HomeMy WebLinkAboutR05-Redevelopment Agency
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Redevelopment Agency · City of San Bernardino
300 Nclnh "D" Slree~ Fourth Floor . Sm Bemardino, Cllifcmia 92418
(714) 384-5081 FAX (714) 888-9413
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Stevu H. Duke<<
Executive Dinctor
SEPTEMBER 20, 1989
CURRENT ACTIVITY STATUS REPORT
FIRST QUARTER F.Y. 1989-90
SvnoDsis of Previous Commission/Council/Committee Action:
09-21-89 Committee recommend that the Commission receive and file the
Current Activity Status Report.
Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
Receive and file the Current Activity Status Report.
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Supporting data attached: Yes
FUNDING REQUIREMENTS: N/A
Hard:
All
Project: All
Commission Notes:
Agenda of: October 2, 1989
Item No. 5'
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Redevelopment Agency
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S T A F F R E P 0 R T
Attached for your Information Is the Agency's Current Activity Status Report.
The Report highlights the significant projects currently being pursued by
Agency staff and explains their status through the first quarter of F.Y.
1989-90. It Is Important to note that the Agency Is currently planning or
Implementing a myriad of development projects when added together have a
development value well In excess of $100 million.
It Is staff's intention to give the Committee/Commission an update of this
report on a quarterly basis. This will occur during the month following the
close of each calendar quarter. The next report. therefore. will be submitted
In January 1990.
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REDEVELOPMENT AGENCY
CURRENT ACTIVITY STATUS REPORT
First Quarter F.Y. 1989-90
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CENTRAl CITY PROJECT AREA
Central City South -- Sports/Entertainment/Cultural Center
· Description: Proposed regional sport/entertainment/ cultural center with
surface parking plus surrounding mixed commercial uses including high rise
office and residential plus street level retail covering a total of %100
acres. The project site is generally located between Rialto Avenue on the
north, I-21S on the west, Mill Street on the south and the rear property
line of the properties located on the west side of "D" Street. The
project's financial feasibility has not been determined.
· Developer: As a result of an RFQ, two proposals have been recelved--one
from the Sunset Group and one from ADI Propertles/Hestdome holdings
corporation.
· Status: Staff has requested that each proposer submit detailed financial
information by September 29th. He will then invite presentations to be
made to a selection committee who will recommend which proposal, if any,
should be considered for a negotiation agreement.
· Estimated Development Value: Undetermined
E Street and Athol Site (Old Harmon Motors Site)
· Description: Proposed retail center on 3.89 acres of vacant property
owned by the Agency.
· Developer: The Sunset Group had an agreement for exclusive rights of
negotiation which expired on August 1. 1989.
· Status: The Sunset Group and two other developers have expressed interest
in further negotiations. They have asked to present specific proposals.
· Estimafed Development Value: Undetermined
181 So. "G" St. (City Surolus Prooerty)
· Description: Old transit yard and recycling center owned by the City.
· Developer: None.
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· Status: Commission/City approved Agency purchasing the property for
$300.000. Bids to do an environmental assessment of the site are being
obtained.
· Estimated Development Value: Unknown.
Central Cltv South Assessment District
· Description: The 125 acre District, under consideration at the request of
the Agency. would Install $10 to $12 million In infrastructure
improvements in accordance with the City's Overlay Zone guidelines. The
principal Improvements are construction of new streets, reconstruction of
existing streets, undergrounding of utilities and landscaping.
· Status: The district has been approved on two occasions (Including one
public hearing>, but still requires one more public hearing before it will
be officially formed in the spring of 1990. A contract to design public
improvements has been let by the City's Engineering Department.
· Estimated Development Value: Unknown
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Carel and Assoc.. Inc. (Court & Allen>
· Description: A five phase project for 154 multi-family units and 170
mini-storage units on former Agency property located between 3rd and 4th
streets, west of Haterman.
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· Developer: Cliff R. Carel and Associates have a Disposition and
Development Agreement with the Agency.
· Status: Developer has completed Phases I through III. Phase IV for 70
multi-family units and Phase V for 170 mini-storage units have not been
started. Property for Phase IV has transferred to the developer, but
property for Phase V remains in the ownership of the Agency. Developer is
In default on commencement of Phases IV and V. Negotiations have been
carried on for some time and were temporarily suspended awaiting the
adoption of the amended General Plan. Developer has been put on notice
that he is in default and if a proposal is not received in the near future
the Agency will recommend proceeding with available remedies under the DDA.
· Estimated Development Value: $5.980,000
Court and E Street Site
· Description: Proposed 155,000 SF, eight to ten-story, granite-faced
office and retail building with a 617 space parking structure on the SHC
of Court and E Streets (currently used as surface parking>. As currently
proposed. the building would be a dramatic architectural statement in
downtown and would set a new standard for corporate headquarters bUildings
in the area.
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· Developer: Currently under an exclusive negotiation agreement with The
Sunset Group which expires September 30, 1989.
· Status: The developer Is reviewing a Disposition and Development
Agreement which Is ready for signature. Developer has secured joint
venture partners who will commit to leasing sufficient space to make
financing possible. Developer has agreed to pay $1.3 million for the land
and the Agency will provide $1.9 million in assistance. The DDA Is
scheduled for consideration at a public hearing on October 16, 1989.
· Estimated Development Value: $15,000,000
Hanford Foundry Acquisition
· Description: The former Hanford Foundry site consists of 10.8 acres which
has recently been cleared and rough graded. The owner has an approved
tentative map to subdivide the property Into ten parcels. The Commission
has approved purchase of the property for $2,200.000.
· Status: An environmental assessment indicated potential toxic waste
problems and. at the request of the owner, the staff agreed to allow the
owner to. cance 1 the escrow.
F Street Rallwav Crosslnq
· Description: Implementation of the Central City South Overlay Zone
mentioned above In connection with the CCS Assessment District. will be
dependent upon obtaining an "at grade" public crossing of the AT&SF
railway for F Street south of Rlalto Avenue.
· Status: A preliminary agreement with the railroad has been obtained, but
It Is dependent upon the closing of two other "at grade" crossings, one on
Main Street and another on 8roadway In the Uptown Area (Subarea 8). The
PUC staff has supported the railroad's position. The Mayor and Common
COuncil have directed that the Engineering Department proceed with the
necessary street vacations. Those who might be damaged In any way by the
vacations were invited at the Council meeting to ask the Agency for
assistance, but no one has come forward.
San 8ernardlno Downtown Main Street. Inc.
· Description: "Main Street," a non-profit pUblic benefit corporation
formed on July 22, 1987, was created to utilize a comprehensive management
approach to help revitalize the City's downtown core lying between I-215
and Sierra Hay, north of Rlalto Avenue and south of 8th Street. An
amended agreement, dated April 17, 1989, provides a specific work program
supported by a three-year budget totaling $915.985. In addition to this,
the Commission has bUdgeted $2,108,015 for related public improvements.
The budgeted funds are to be supplied by the Agency, prlmarlly from the
Central CIty North project area's reserves.
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· Status: In addition to ongoing education, promotion, and economic
restructuring activities, Main Street is involved in the preliminary
design of pUblic improvements to be built in the central portion of the
program area. The public improvement activities will total $2,108,015 of
the program effort and will be constructed by or on behalf of the City
through the Department of Public Harks. Other program elements In the
work program Include a building facade renovation program and, a sign
abatement program, both of which require Main Street to specify In writing
the program elements and obtain Commission Approval. Main Street has
submitted a written explanation of each program. Commission approval has
yet to occur. Main Street will make a quarterly status report in October,
1989.
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CENTRAL CITY NORTH PROJECT AREA
Platt Bulldinq
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Description:
and E Street.
to expand the
Renovation of an historic building at the SEC of 5th Street
The Agency was Involved In obtaining parking which was used
downtown parking lots as well as for the Platt Building.
· Owner: Art Gregory.
· Status: Owner Is In default on completion of exterior improvements.
partially due to difficulties In obtaining tenants. Main Street Is
cooperating to locate tenants and Agency staff has been negotiating an
amendment to the existing agreement. Remedy under existing agreement Is
$50,000 to Agency from owner. Developer has been put on notice that he is
in default and demand has been made for $50,000. If a timely response is
not received the matter will be referred to counsel for further action.
· Estimated Development Value: $1.200,000
Miles House
· Description: Renovation and relocation of the Queen Anne style Victorian
Miles house to Agency-owned land adjacent to the Historical Society
building on the SHC of 8th and D Streets. The Agency will sell the land
(an Improved parking lot) to the developer who has relocated the house
onto a portion, use another portion for parking for commercial uses in the
renovated house, and maintain parking on the balance for the benefit of
the Agency under an easement for SUbsequent license or lease to the
Historical Society.
· Developer: Rock Enterprises.
· Status: Under the Disposition and Development Agreement developer has
relocated the house and has started renovation. An escrow has been opened
to transfer the land.
· Estimated Development Value: $240,000
Hhole 810ck Development Concept North of City Hall
· Description: Complete renovation and/or reconstruction of the block
between Court and 4th Streets and between D and E Streets for a mixed use
development of retail and office plus a limited amount of third story
residential.
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· Status: Originally proposed by the Janss Corporation who has since asked
that the. Agency evaluate the concept and issue a request for
qualifications to developers. They suggested that after a qualified
developer Is selected, specific development criteria would be determined.
Agency economist has reviewed the site potential and recommended that the
Agency not proceed with the project until the SEC of Court and "E" Streets
Is developed. It Is their opinion that lacking the development of this
new building, there Is no significant market for the deSired Improvements.
· Estimated Development Value: Unknown
Main Street
Please see the description on the Central City Project.
NH Corner of 5th and "E" Streets
· Description: Proposed twelve (12) story 150 unit senior citizens complex
with ground floor office and commercial space.
· Developer: Investors Capital Partnership. L.P.
· Status: The Community Development Department (COD) has been negotiating
with a developer (Bob Uthom) for construction of a senior citizens
complex. COD has requested that developer submit a proposal In
conformance with the Agency's Developer Relations Guidelines. The Agency
may be Involved In this project.
· Estimated Development Value: $15,000,000.
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c::> NORTHWEST PROJECT AREA
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Northwest Shopping Center
· Description: A 92,000 SF neighborhood shopping center on ten acres of
Agency-owned property (with a remainder parcel of 5.5 acres), As
presently conceived, the $12.2 million center Is proposed to be financed
from the following sources:
Haagen Contribution
UDAG Grant
Convetlonal First
Agency Land Purchase
Agency Bonds
Agency/City Second
TOTAL
$500,000
1,834,000
3,256,000
1,325,000
2,000,000
3.296.000
$12,225,000
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In addition, there would be three years of very low Interest Interim
financing from City and County CDBG float funds to reduce the project
carry to acceptable levels. The turrently proposed mechanism Includes a
ground lease to the City who will sublease to Haagen. Haagen will have a
'best efforts' right to negotiate a purchse at some point In the future.
After receiving $3,296,000 which would pay off our second trust deed, the
City/Agency would be entitled to a 35~ share in the proceeds of sale or
refinancing.
Developer: Alexander Haagen
Status: Since Inception, the project budget has Increased $2,077,000.
This Is because the supermarket Is 12,000 feet larger and $5 per square
foot more expensive to build ($730,000 of the Increase); the larger
supermarket requires full flxturlzatlon ($1,050,000 of the Increase); and
there are Increased financing costs. The City Is being asked to bear the
Increase in construction costs for the supermarket while Haagen bears the
financing costs. These Items are currently the subject of negotiations
with Haagen.
Haagen -has confirmed that the Board of Directors of American Stores (the
parent of Lucky) has determined that the site, with appropriate lease
terms, meets their basic criteria for a new market location and has
authorized formal lease negotiations. American has, however, continued
the item at theIr board meetings. They are seeking resolution of two
matters. First, the outcome of negotiations between the City and Haagen.
Second, the outcome of an appeal by California to block their merger with
Alpha Beta. If the Supreme Court agrees to hear the matter, American says
they will not be able to go forward during the protracted hearings before
the court.
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Meanwhile, continued availability of the UDAG grant Is dependant upon
substantial progress In the Lucky negotiations. The current status of the
UDAG Is subject to change on a day to day basis because HUD Is looking for
money from Infeasable projects that could be used to fund current requests
In the next funding cycles.
· Estimated Development Value: $12,225,000
Ninth Street and Pennsvlvanla Property Acquisition
· Description: A 3.87 acre parcel appeared on the tax-defaulted property
list and the Agency has been authorized to purchase It using $7,500 from
the low-to-moderate-Income housing fund.
· Status: A request has been filed with the county and, If the property is
not redeemed by the owner, the Agency will acquire the parcel sometime
next year. It Is usable for a single-family residential project.
· Estimated Development Value: Unknown
HAB Land Development Corporation
· Description: A 40 acre parcel designed for heavy Industrial users.
landlocked by county flood control channels.
· Owner: HAB Land Development Corporation.
· Status: HAB has discussed requesting Agency assistance and has Indicated
that they are considering further conversations with the County Flood
Control District over an old obligation to Muscoy Hater Company with
respect to vehicular crossings which they Interpret to be bridges to the
property. This may Involve the Agency In that It Is possible we will
attempt to renegotiate a pass-through of tax Increment from the County to
the Agency. The original. temporary pass-through agreement for the
Northwest project area expired without being replaced by a permanent
agreement. Agency and County representatives were involved In an attempt
last year to develop a permanent agreement. Negotiations were suspended
to expedite the Northwest Shopping Center which is dependent upon the loan
of CDBG float money from the County.
· Estimated Development Value: Unknown
Public Enterprise Center
· Description: The Agency owns the PEC buildIng on the SHC of Western and
Highland Avenues. The six existing tenants are the City Library, the
Community Access Cable TV studios, the Drop-in Center run by Parks and
Recreation, the branck Post Office and bill payment center, People's
Choice, and the Northwest Project Area Committee.
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· Status: He are continuing to make progress in correcting the maintenance
problems. The electrical problems at the building have been corrected and
the parking lot has received a seal coat. Bids to replace the roof,
renovation of refinishing of exterior wood surfaces and Interior painting
have been received, The PEC Task Force issued a RFQ In June of 1989, as a
result of the RFQ only one consultant submitted a proposal. Because only
one proposal was received, the Task Force has decided to re-issue the
RFQ. The Task Force Is currently working on new mailing list to improve
response to RFQ.
· Estimated RFQ completion date is October 1989.
Arrowhead Health Care Systems
· Description: A 50,000 to 100,000 SF professional medical office complex
to be built partly on land owned by Arrowhead (former school property) and
partly on land now owned by the Agency (former park property) on the west
side of Medical Center Drive south of 19th Street.
· Developer: Arrowhead In joint venture with Dowdell Corporation, a
subsidiary of Xerox,
· Status: Agency staff and Arrowhead Health Care representatives have met
several times over the past weeks to work out deal points to DJDA.
Agency's Counsel Is now drafting the final document. He expect to have
DJDA signed by Arrowhead Health Care In September 1989 for presentation to
the Commission on October 2, 1989.
· Estimated Development Value - $5,000,000 to $10,000,000.
SHC of Baseline and Mt Vernon
· Description: A retangular-shaped piece of ground totaling 3.6 acres
Including ~0.5 acres owned by the Agency. There Is an existing, abandoned
Pioneer Chicken on the corner, but the balance of the site Is vacant. The
proposed General Plan land use designation would allow for either
commercial uses or multi-family uses on the site.
· Status: The Agency's economist is analyzing the development potential for
the site. We will then consider whether an Agency-sponsored or -assisted
project Is worthwhile.
· Estimated Development Value: Unknown
Senior Citizen HouslnQ Pro1ect
· Description: A 50 unit senior citizen residential project to be built on
land owned by Arrowhead Health Care Systems. The proposed financing comes
50~ from the County Housing Authority and 50~ from the Agency. The
Agency's share will be obtained from the sale of tax allocation bonds
secured by revenues from 20~ set aside funds.
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· Status: The City's Department of Community Development is Involved in the
negotiation of the various leases, agreements, and studies required to
form the project. Public hearings are being set and Community Development
has contracted out the architectural plans and specifications.
Finalization of this project has been delayed due to negotiations on the
AHCS Office Building, This project should come back on line In October
1989.
· Estimate Development Value: $2,000,000
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o STATE COLLEGE PROJECT AREA
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Greenleaf Development
· Description: A speculation development of ten Industrial buildings
totaling 350,000 SF expected to produce 700 jobs.
· Developer: Greenleaf/Neely Investors.
· Status: The project has received all entitlements and six of the ten
buildings have been completed. Developer has requested assistance (which
the Agency's economist says Is warranted) for the cost of Improving a
city-owned storm drain that conveys water underneath the freeway and
through the development to a public street. An assistance agreement has
been drafted and Is under review with the developer. It would provide
assistance of $100,000. Details of agreement have been worked between the
Agency and Greenleaf and we be able to present the agreement by October
1989.
· Estimated Development Value: $13,000,000
· General Plan - IL: Planning Case - PM12482: Planner - not assigned
ColleQe Parkway Development Associates
· Description: Ten parcels of land on the SHC of University Parkway and
1-215. Existing development Is comprised of Papa's Pantry, Motel 6, and
Taco Bell,
· Developer; College Parkway Development Associates.
· Status: College Parkway received a loan of $350,000 from the Agency
secured by second trust deeds. It was substantially paid back and then
reloaned under an amendment to their loan agreement which substituted new
deeds of trust. The loan has now been paid down to $122,954 In connection
with releases of various parcels. They are asking that the Agency once
again loan funds for the final phase of the development and Increase the
principal balance to $500,000. The developer has not met the time
requirements for construction of Phase II and Is now in default. College
Parkway has been asked to submit economic data justifying their need for
additional funds but they have not responded to our written request.
· Estimated development Value: $15,125,000
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University VIllaQe Apartments
· Description: A 197 unit apartment project on the NEC of University
Parkway and Kendall Drive on land assembled by the developer and by the
Agency. In addition to site assembly assistance, the Agency will
reimburse a portion of the landscaping expenses required to screen the
development from the entrance to the University.
· Developer: University Village Associates.
· Status: The apartment units are complete and have received certificates
of occupancy from the city. The developer has a remaining obligation to
complete landscaping In the median of North Park Boulevard and on a one
acre park site adjacent to the University. Landscaping of median has
begun and should be completed by mid October 1989.
· Estimated Development Value: $7,500,000
5055 Hallmark Building
· Description: On June 23, 1989, the Redevelopment Agency acquired, at a
Trustee's sale, an Industrial building located at 5055 Hallmark Parkway,
formerly owned by Hestslde Community Development Corporation, In
accordance with a covenant between the Economic Development Administration
and the redevelopment Agency, the Agency may use the property as a light
industrial incubator facility for small businesses.
· Status: On July 7, 1989. Agency staff ran newspaper ads and mailed
Invitations to fifty-one (51) consultants to submit proposals to develop a
long-term use, management and Implementation plan for the Hallmark
building. Two consultant teams submitted proposals and, based on the
written proposals and Interviews, staff ranked InnovatIve Partners Inc. to
be the best suited for the Agency's needs. Subject to Commission approval
of the consulting contract, the 90-day study will begin In October 1989.
NEC of 27th Street and Little Mountain Drive
· Description: A privately owned ~14 acre site proposed to be designated as
commercial office In the amended General Plan. This Is the last major
piece of vacant land in the area and is at the approximate center of the
preferred area located by the consultant who assessed alternative
locations for a pOlice headquarters building.
· Status: The Agency's economist Is conducting an analysis of the site's
potential. A number of studies would be required for development of the
property Including storm water control and traffic assessment studies.
The location Is convenient to freeway access for both 1-215 and Route 30.
It is not immediately adjacent to mapped fault zones and Is unlikely to
have Liquefaction potential. He will consider whether an Agency-sponsored
or -assisted project is worthwhile once we receive the economist's report.
· Estimated Development Value: Unknown.
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o SOUTHEAST INDUSTRIAL PARK
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Sunset Business Park
· Description: Twelve low-rise office/commercial buildings (nine under
agreement with the Agency) on Hospitality west of Hunt's Lane.
· Developer: The Sunset Group.
· Status: Eight office buildings and one commercial building have been
completed and the first seven of these have received partial certificates
of completion. The first seven office buildings were three-story
structures, but the most recent was a four-story building. The developer
Is ahead of the schedule in the agreement. Rough grading has been
completed for the remaining buildings, but construction will depend upon
market conditions and the outcome of negotiations for an amendment to the
OPA. More square footage would be built on additional land. In return for
further financial assistance for public improvements (possibly Including
expansion of the South "E" Street bridge). Continued development of four
story and higher buildings will be dependent upon mitigation of
significant traffic impacts and may require structured parking. The
developer has applied for a UDAG grant to assist the financing of this
parking structure. A special study will be made by the Planning
Department to develop building height limitations for the Commerce
Center/Tri-Clty area.
· Estimated Development Value: $50,000,000.
San Bernardino Auto Plaza
· Description: A regional auto plaza which will ultimately contain 11 new
car dealerships added to 2 existing dealerships, plus an auto service
center and ancillary retail buildings on Auto Plaza Drive west of 1-215.
· Developer: Orange Show Plaza Associates (master site Improvements) and 8
& M Properties (general commercial areas).
· Status: Master site Improvements and six of the new car dealerships have
been completed. Acura and Nlssan dealerships as well as the auto service
center and ancillary retail buildings are under construction. A Volvo
dealership recently received DRC approval to begin construction. One
dealership site remains available. Construction has started on the
commercial areas.
· Estimated Development Value: $8,000,000
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o Friedlander Auto Dealership (Acura)
· Description: Acura Car Dealership for San 8ernardino Auto Plaza.
· Developer: Herb Friedlander
· Status: Because construction of the dealership fell behind the date
called for In the underlying Auto Plaza OPA, negotiations with Herb
Friedlander led to a separate OPA covering just this dealership. Under
Its terms, Mr. Friedlander deposited $75,000 with the Agency, which is to
be refunded If the following construction deadlines are met:
Obtain building permits - by May 1, 1989
Start construction - by July 1, 1989
Certificate of Occupancy - by January 1, 1989
To date, $50,000 has been refunded and construction Is continuing to
progress on schedule.
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DeGroot/Sunset Group
· Description: A 20,000 SF Industrial building to be built on Rlverview
Drive.
· Owner: Ted and Jacqueline DeGroot (recently joint ventured with The
Sunset Group).
· Status: The agreement has been amended five times to allow in-lieu fees
to be paid Instead of proceeding with construction. Construction is once
again overdue and the Commission has authorized the staff to proceed with
the default provisions of the agreement. In response to staff's,
notification of Intent we have been advised that The Sunset Group
(Slmchowltz) Is interested In amending the agreement and substituting
themselves for DeGroot. We have been receptive to the concept of
substitution and expect to receive a written proposal In the near future.
· Estimated Development Value: $600,000
King Default
· Description: An 11.3 acre parcel of Industrial property on the NWC of
Tippecanoe and Cooley Avenues. The developer was obligated to construct 5
Industrial buildings totaling 145,000 SF and worth $5.000,000 under an
agreement signed In 1979.
· Developer: Chuck King & Associates.
· Status: Only two buildings (83,000 SF) have been built. Developer owed
the Agency $44,000 In in-lieu fees as of January I, 1989. On November 21,
1988. the Commission authorized the City Attorney to proceed with
litigation to recover the fees due. An action has been filed but Mr. King
has not been served because he has not been located.
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o Rockwell International
· Description: Modification of existing Industrial buildings at the west
end of Cooley Avenue for aerospace design, production, and testing
facilities for the MX rail garrison program,
· Status: The Agency has an agreement to provide $770,000 in assistance to
Rockwell over a period of 5 years in exchange for 1250 man years of
employment. Rockwell has successfully bid for another project which will
be placed in buildings adjacent to their current facility. The Agency is
examining the feaSibility of acqUiring a 6 acre parcel of land which will
be leased to Rockwell for a periOd of 10 years to be utilized as a parking
site. A DOA Is In Rockwell's hands for review which will provide that the
Agency acquire the property (eminent domain will be required due to the
Mayor's partial ownership of the site) and assist in the improvement of
the parking lot, not to exceed total assistance of $600,000. Rockwell
will double their employment commitments. The matter Is scheduled for
Commission consideration on October 2, 1989.
· Estimated development Value (current project): $12,000,000
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o SOUTH VALLE PROJECT AREA
The Club Center
· Description: A large scale, discount retail, center in South Valle
located on Caroline Street between Hunts Lane and Haterman.
· Developer: SP Investments.
· Status: Construction pursuant to the original OPA Is complete, except
that the agreement will require an amendment, which Is currently being
reviewed by staff, before a certificate of completion can be issued. The
square footage was less than required by the agreement, but the value has
been exceeded. The project was also completed several years ahead of
schedule. On a related matter, the Department of Public Works, on behalf
of the Agency, Is completing a railroad crossing on Hunts Lane In
cooperation with Colton, Construction bidding can begin as soon as
permisSion to perform the work Is received from the Southern Pacific
Railroad. Merv Slmchowltz, a principal In SP Investments, plans to submit
a new proposal which will provide for an expanded bulldout of the Club
Center, In return for additional financial assistance needed for further
public Improvements In the area.
o · Estimated Development Value: $10,000,000
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c::> TRI-CITY PROJECT AREA
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Pace Warehouse
· Description: A 150,000 SF discount retail center featuring Pace Harehouse
and Sportmart with additional retail shops and a restaurant site located
on Harriman near Hospitality. Agency agreed to provide $1,200,000 In
assistance.
· Developer: Alexander Haagen Company and Doug Golding.
· Status: All development Is complete with the exception of the restaurant
site. An amendment was recently executed and a certificate of completion
issued. The amendment prOVides the developer additional time to complete
the restaurant, while delaying the commencement of reimbursement payments
to him until this construction Is complete.
· Estimated Development Value: $12,500,000
Trl-Clty Corporate Center
· Description: A regional commercial and business center totaling 2 million
SF with a value, when complete, of well in excess of $150 million located
on the site of the old Trl-City Airport.
· Developer: Rancon Realty Funds IV and V.
· Status: Twelve buildings, including two four-story and one six-story
office building, have been completed. Current construction has slowed,
but a regional headquarters building and operations center for Santa Fe is
under construction. The Agency's obligations Include the cost of
constructing a new off-ramp for 1-10 at Haterman Avenue, which Is
currently estimated to cost $1.25 million. Southeast Industrial Park will
be loaning this amount to the City, which will It turn loan It to
Trl-Clty. The Agency's other primary obligation under the existing
agreement Is to pay for the design engineering of the new on and off-ramps
(estimated cost $250,000), which design work is presently 95~ complete.
Rancon has requested further Agency assistance on the construction of
approximately $1.9 million In public improvements. Staff is negotiating
with Rancon to develop an agreement for presentation which will provide
for $600,000 in Agency reimbursement to Rancon.
· Estimated Development Value: $150,000,000
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o Santa Fe Relocation
· Description: The retention and relocation of the Santa Fe Yard Office and
facilities to provide control of all Santa Fe trains operating In
California. This Is a large regional dispatch center requiring
specialized communication and control equipment. The Agency Is
contributing $100,000 In relocation assistance.
· Developer: Santa Fe.
· Status: Construction in process; the projected completion date in
November 1, 1989.
· Estimated Development Value: $3,800,000 in special equipment.
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o UPTOWN PROJECT AREA
Rlalto and I Site
· Description: The Agency owns a 13,000 SF building on a 48,709 SF lot on
the NEC of Rialto and "I" (the former Hashington Elementary School>. The
proposed General Plan land use designation Is Light Industry.
· Status: Agency staff Is forwarding a recommendation that the Commission
authorize staff to obtain bids for the demolition of the Agency-owned
building; authorize staff to Issue an RFQ/RFP for developing the block in
which the building Is located; and authorize staff to prepare a financing
plan to support the development.
· Estimated Development Value: Unknown
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o OTHER DEVELOPMENT ACTIVITIES
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Enterprise Zone
· Description: The existing Enterprise Zone sunsets In November of 1989.
Staff Is preparing a report on the effect of the zone's existence from
Inception as well as for the last year of operation.
· Status: An application was made for a federally designated enterprise
zone. Our raw score for the rating criteria was low, but we have
requested special consideration because the proposed zone Is adjacent to
Norton AFB and would be an Important tool In offsetting the effects of the
closing of the base.
Neighborhood Spirit
· Description: Neighborhood Spirit combines several low-and moderate-income
housing rehabilitation and neighborhood Improvement programs offered by
various City departments Into one ~fflclent and comprehensive program
designed to enhance the value of homes in selected neighborhoods In a
short periOd of time, Neighborhood Spirit will be offered to
neighborhoods which are members of NeighborhOOd Hatch and which are
willing to commit to making the program successful. These neighborhoods,
called focus neighborhoods, will receive the concentrated effort of all
City services for a six month period of time. NeighborhOOd by
neighborhood, San Bernardino will Improve Its regional Image as an
attractive, safe residential center.
· Status: The Neighborhood Spirit program concepts will be reviewed with
Commission and Council on October 2, 1989. Subsequently, staff will
recommend two demonstration neighborhoods, a speCific program and
operations manual, and marketing tools, The program is expected to begin
on November 1, 1989.
Proposed Mt Vernon Business Corridor Redevelopment Pro1ect Area
· Description: A potential redevelopment project area principally focused
on Mt. Vernon Avenue, Foothill Boulevard and the Santa Fe freight yards.
· Status: A Council appOinted task force (composed of Councilmembers
Estrada, Flores, and Pope-Ludlam) is holding community meetings in order
to explain the process and to receive public comments on the concept. A
recommended survey area is expected to be presented to the Council in
November.
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Amendment of Redevelooment Plans
· Description: Amendment of eight pre-1976 plans to increase the tax
allocation limit by 20~ and the amedment of all plans to conform
with the newly adopted General Plan.
· Status: A staff report has been prepared for presentation to the
Commission following environmental review, This will be the first
step which will Increase tax allocation limits in eight (8) plans.
Agency staff and Counsel are reviewing each of the plans for a more
general amendment to conform each plan with the General Plan.
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ADMINISTRATIVE SUPPORT ACTIVITIES
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1. BudQet
The fiscal year 1989-90 budget documents have been revised to improve
tracking of expenditures and revenues for each project area. The proposed
1989-90 budget has been completed and submitted to the Redevelopment Committee
for review. Final adoption of the budget will be proposed In October pending
completion of the review by the Committee.
2. Audit Findings/Status
All accounting records relating to mortgage revenue loans have been
reconciled with Pacific Savings and Security Pacific National Bank to complete
the outstanding portion of last year's annual audit conducted by Eadie &
Payne. All project area accounts for the fiscal year ending 6/30/89 have been
closed out, and the 19B8-89 annual audit is In progress. To date, there are
no indications of any audit exceptions.
To address the one outstanding audit exception cited by Eadie & Payne in
last year's audit, the chart of accounts is currently being revised to comply
with all fund accounting procedures required by Government Accounting
standards.
3. Accounting Comouter ProQram
The accounting computer program is currently being modified to accommodate
the revised budget format and chart of accounts, Hhen completed, the program
will facilitate budget analysis and reporting on a more timely basis.
4. Bond Refinancing
Coordinated all Agency reports and data needed by Bond Counsel and the
financial consultants (Miller & Schroeder) to Implement the refinancing of the
Agency's bond issues and to establish the Joint Powers Financing Authority.
5. Financial Planning
The analysis of the Agency's tax revenues and bond obligations was
completed in accordance with the consulting contract with Katz Hollis.
6, Personnel Policies and Procedures
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A full revision of the Agency's personnel manual to update and incorporate
various changes In the law and other polley and procedural changes since 1981
was completed and adopted by the Commission.
7. SalarY/Benefit Adjustments
A 3~ cost of living salary adjustment and the full pick-up of the employee
PERS contribution (representing a l~ increase) was proposed and adopted for
all non-management employees.
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A long-term disability insurance program was approved by the
Commission and instituted for all employees effective September 1, 1989.
8. Master Services AQreement
To facilitate the contracting of various services between the Agency
and the City, a Master Services Agreement was developed and implemented.
9. Consolidated Vendors' List
The Agency developed a consolidated list of all current and
prospective vendors, Including minority and local vendors, to facilitate
the widest pUblication of RFP's and RFQ's and the procurement of the most
cost-effective services.
10. Staffing Comoonent
Two positions In the Administrative Services Division have been
proposed for elimination. One position (recently vacated) has been
recommended for deletion from the proposed 1989-90 budget, and a second
position (also vacant) has been recommended for transfer to the
Development Division in the proposed budget. The administrative support
operations will be further reviewed to assess the most efficient staffing
levels needed by the Agency.
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