HomeMy WebLinkAboutR07-Redevelopment Agency
-
o
o
o
Redevelopment Agency . City of San Bernardino
300 Narlh "D" SIZllet, Pounh Floor . SID Bernrino, Califomia 92418
(714) 384-S081 FAX (714) 888-9413
PrIde .,
e-
S.._ H, Dulcett
Exocutive Direcror
SEPTEMBER 18, 1989
ROCKWELL INTERNATIONAL
Synoosis of Previous Commission/Council/Committee Action:
09-07-89 The Committee recommended that the Rockwell International item be
forwarded to the Commission and Common Council.
09-18-89 The Commission and Common Council set the Joint Public Hearing for
October 2, 1989.
09-21-89 The Committee reviewed the terms of the proposed Agreement and
forwarded It to the CommissIon and Common Council.
Recommended Motion:
o
(MAYOR AND COMMON COUNCIL)
A) Move to adopt A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE OF CERTAIN REAL
PROPERTY PURSUANT TO A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETHEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND
ROCKHELL INTERNATIONAL CORPORATION.
(continued on page 2)
S ven . uk tt, xecutlve DIrector
Contact Person: Steven H. Dukett
Phone: 384-5081
Supporting data attached: YES
FUNDING REQUIREMENTS: $600,000
Ward:
Project: SEIP
Commission Notes:
,0
SD:ND:sm:2345H
Agenda of: October 2, 1989
Item No.
?
o
o
Redevelopment Agency
o
(continued from page 1)
(COMMUNITY DEVELOPMENT COMMISSION)
B) Move to adopt A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF
SALE OF CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETHEEN THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO AND ROCKHELL INTERNATIONAL CORPORATION.
o
o
SD:ND:sm:2345H
2
o
o
o
-
o
o
Redevelopment Agency
S T A F F R E P 0 R T
It is requested that the Mayor and Co..on
Development Co..ission approve and ratify
Disposition and Develop.ent Agree.ent and
with Rockwell International Corporation,
Council and the Co..unity
the final docu.ents for the
the Lease and Option to Purchase
BACKGROUND
Rockwell has obtained leases (with options to purchase) on two buildings with
square footage totaling 47,000 square feet adjacent to their current facility
on Cooley Court, The impact of this expansion on the City of San Bernardino
include:
Invest.ents
Value
Parking Improve.ents
Electronic laboratory
equipment & i.provements
Telecom & Computer equipment
Furniture & office equip.ent
Tenant I.prove.ents
TOTAL New assessed value
$ 300,000
1,600,000
2,100,000
3,000,000
3.000,000
$10,000,000
Yearly new tax increment from project $
100,000
Other city benefits from project:
Average number of jobs per year 2250
over 5 years
Staff recently completed negotiating a Disposition and Develop.ent Agreement
with Rockwell, The following is an itemization of proposed incentives to be
provided by the Redevelopment Agency:
Incentives
Estimated
Value
-Parking Site
to be leased for $1,00 a
year for 10 years
-Tenant Improvements
$300,000
300,000
Total Proposed Assistance
$600,000
The Agency's overall assistance is capped at $600,000, In addition, the
Agreement grants Rockwell the option to purchase the site at the end of the
10-year lease at appraised market value, or renew the lease in three 5-year
increments at fair market value,
SD:ND:sm:2345H
3
o
o
o
..~ 1 11
0
uu
-
JIi.
o
Redevelopment Agency
In return for the Agency's assistance, Rockwell has agreed to develop or lease
47,000 square foot facility and add a ainiaua 1250 aan-years over a five-year
period. The DDA also contains language obligating Rockwell to develop a
parking facility on the site acquired by the Agency, Rockwell has agreed to
be responsible for any additional parking costs above the $600,000 to be
provided by the Agency, Attached for reference, are copies of the site aap,
Suaaary of Financial Aspects, and the necessary resolutions cited in the
recommended motion.
Under Section 33433 of the California Health and Safety Code, a joint public
hearing and the adoption of a final resolution is required to coaplete this
aatter, Said joint public hearing has been set for October 2, 1989 at 11:00
a,m. in the Council Chaabers, Motions (A) and (B) will adopt the 33433
findings and ratify the Disposition and Developaent Agreeaent and the Lease
and Option to Purchase, If the Agreement has not been signed by Rockwell by
11:00 a,m, on October 2, 1989, it is recoamended that the aatter be continued,
SD:ND:sm:2345H
4
o
o
o
o
o
1
RESOLUTION NO.
2
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE OF
CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION.
3
4
5
WHEREAS, the Redevelopment Agency of the City of San
6 Bernardino (the "Agency") is authorized to conduct redevelopment
7 activities within the South East Industrial Park Redevelopment
8 Project Survey Area (the "Survey Area"), which activities include
10 development; and
9 the acquisition and conveyance of real property for private
11 WHEREAS, the Agency desires to enter into a Disposition
12 and Development Agreement (the "Agreement") with Rockwell
13 International Corporation, a Delaware Corporation, (the
15
14 "participant"), which Agreement provides for the acquisition and
16 Area as set forth in the Agreement; and
sale of the "Site," which is that certain portion of the Survey
17 WHEREAS, the Agreement provides for the acquisition, upon
18 satisfaction of applicable conditions, by Participant of certain
19 real property as identified in the Agreement pursuant to the
20 terms and conditions more particularly set forth in the
21 Agreement; and
22 WHEREAS, the Common Council of the City of San Bernardino
23 and the Agency have conducted a duly noticed joint public hearing
24 regarding the proposed acquisition and disposition of real
25 property in accordance with California Health and Safety Code
26 Sections 33431 and 33433; and
27
28
DAB/ses
September 19, 1989
1
o
o
o
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
o
o
1
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE OF
CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION.
2
3
4
5
WHEREAS, the staff report pertaining to the Agreement,
which has been on display prior to the joint public hearing in
accordance with Section 33433 of the California Health and Safety
Code, contains a detailed description of the provisions of the
6
7
8
9
Agreement;
NOW THEREFORE, the Mayor and Common Council do hereby
resolve as follows:
SECTION 1.
Pursuant to the California Environmental
Quality Act (CEQA), Public Resources Code Section 21090 and
Section 15180 of Guidelines adopted pursuant thereto the
Agreement is an activity pursuant to and in furtherance of the
South East Industrial Park Redevelopment Plan,
SECTION 2.
The Mayor and Common Council find and
determine, based upon the testimony and information presented
during the public hearing with respect to the Agreement that the
consideration for the real property to be transferred to the
Participant by deed is in compliance with and evaluated pursuant
to Health and Safety Code Section 33433, is less than the value
thereof determined at the highest use permitted under the South
East Industrial Park Redevelopment Plan, but that such
consideration is necessary to secure the commitment of
Participant to execute the Agreement, which Agreement will
significantly benefit the Common Council and the community by
DAB/ses
September 19, 1989
2
o
o
o
o
o
1
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE OF
CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION.
2
3
4
5 alleviating blighting conditions, generating revenues, and
6 providing for high-quality development activities to stimulate
7 the economic enhancement of the Survey Area.
8
SECTION 3. The Mayor and Common Council hereby approve the
9 Agreement and all of its provisions, including without
11 the City Clerk to execute all documents referenced in the
10 limitation, the attachments therein, and authorize the Mayor and
12 Agreement and necessary to effectuate the provisions of the
14
13 Agreement.
15
I HEREBY CERTIFY that the foregoing resolution was duly
16 adopted by the Mayor and Common Council of the City of San
17 Bernardino at a meeting thereof, held on the
18 day of , 1989, by the following vote, to wit:
19
20
21
22
23
24
25
26
27
28
AYES:
Council Members
NAYS:
ABSENT
OR ABSTAIN:
City Clerk
DAB/ses
September 19, 1989
3
o
10
11
12
13
14
o 15
16
17
18
19
20
21
22
23
24
25
26
27
o
28
o
o
1
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE OF
CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION,
2
3
4
5
6
7
8
9
The foregoing resolution is hereby approved this
day
of
, 1989.
Approved as to form
and legal content:
W.R, Holcomb, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
B~~)
DAB/ses
September 19, 1989
4
o
o
o
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
o
o
1
RESOLUTION NO.
2
3
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE
OF CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL
CORPORATION,
4
5
6
WHEREAS, the Redevelopment Agency of the City of San
7
Bernardino (the "Agency") is authorized to conduct redevelopment
8
9
activities within the South East Industrial Park Redevelopment
Project Area (the "Project Area"), which activities include the
acquisition and conveyance of real property for private
development; and
WHEREAS, the Agency desires to enter into a Disposition
and Development Agreement (the "Agreement") with Rockwell
International Corporation, a Delaware Corporation, (the
"Participant"), which Agreement provides for the acquisition and
sale of the "Site," which is that certain portion of the Project
Area as set forth in the Agreement; and
WHEREAS, the Agreement provides for the acquisition, upon
satisfaction of applicable conditions, by Participant of certain
real property as identified in the Agreement pursuant to the
terms and conditions more particularly set forth in the
Agreement; and
WHEREAS, the Common Council of the City of San Bernardino
and the Agency have conducted a duly noticed joint public hearing
regarding the proposed acquisition and disposition of real
property in accordance with California Health and Safety Code
Sections 33431 and 33433; and
DAB/ses
September 20, 1989
1
o
o
o
o
o
1
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE
OF CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL
CORPORATION,
2
3
4
5 WHEREAS, the staff report pertaining to the Agreement,
6 which has been on display prior to the joint public hearing in
7 accordance with Section 33433 of the California Health and Safety
8 Code, contains a detailed description of the provisions of the
9 Agreement;
10 NOW THEREFORE, the Community Development Commission of the
11 City of San Bernardino does hereby resolve as follows:
12
SECTION 1.
Pursuant to the California Environmental
13 Quality Act (CEQA), Public Resources Code Section 21090 and
14
15
Section 15180 of Guidelines adopted pursuant thereto the
Agreement is an activity pursuant to and in furtherance of the
16 South East Industrial Park Redevelopment Plan,
17
SECTION 2,
The Community Development Commission of the
18 City of San Bernardino finds and determines, based upon the
19 testimony and information presented during the public hearing
20 with respect to the Agreement that the consideration for the real
21 property to be transferred to the Participant by deed is in
22 compliance with and evaluated pursuant to Health and Safety Code
23 Section 33433, is less than the value thereof determined at the
24 highest use permitted under the South East Industrial Park
25 Redevelopment Plan, but that such consideration is necessary to
26 secure the commitment of Participant to execute the Agreement,
27
28
which Agreement will significantly benefit the Commission, The
DAB/ses
September 20, 1989
2
o
o
o
o
o
1
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE
OF CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL
CORPORATION.
2
3
4
5 Agency and the community by alleviating blighting conditions,
6 generating revenues, and providing for high-quality development
7 activities to stimulate the economic enhancement of the Project
8 Area.
9
SECTION 3.
The Community Development Commission hereby
10 approves the Agreement and all of its provisions, including
11 without limitation, the attachments therein, and authorizes the
12 Chairman, the Executive Director and the Secretary to execute all
13 documents referenced in the Agreement and necessary to effectuate
14
15
the provisions of the Agreement.
16 I HEREBY CERTIFY that the foregoing resolution was duly
17 adopted by the Community Development Commission of the City of
18 San Bernardino at a meeting thereof, held on the
20
19 day of , 1989, by the following vote, to wit:
21
22
23
24
25
26
27
28
AYES:
Commissioners
NAYS:
ABSENT
OR ABSTAIN:
Secretary
DAB/Ses
September 20, 1989
3
o
o
o
-
o
o
1
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE CONVEYANCE BY MEANS OF SALE
OF CERTAIN REAL PROPERTY PURSUANT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL
CORPORATION,
2
3
4
5
6
The foregoing resolution is hereby approved this
day
of
, 1989.
7
8
Chairman of the Community
g Development Commission of the City
of San Bernardino
10 Approved as to form
and legal content:
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
2B
Agency Counsel
BY'~J
/ -
DAB/ses
September 20, 1989
4
o
o
o
.JlI
o
o
SUMMARY OF FINANCIAL ASPECTS
OF PROPOSED AGREEMENTS WITH THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(In Accordance with California Health and Safety Code Section 33433)
Proposed Agreements: Lease and 0 tion to Purchase and Dis osition and
Deve10 ent reement coveri land located West of Coole Avenue APN
2 1-021- 0 and 1- 1-52 the Site between the Redeve10 ent enc
of the Ci of San Bernardino Lessor and Rockwell International
Corporation Lessee.
PROJECT AREA: Southeast Industrial Park
It is proposed that the Redevelopment Agency of the City of San
Bernardino proceed with efforts to acquire the Site and, if such
acquisition is accomplished, lease with an option to purchase the Site to
Rockwell International Corporation as set out on the attached map
(Exhibit "A").
1)
The cost of the agreement to the Agency, including land acquisition
cost and the costs of any improvements to be provided by the Agency,
plus the expected interest on any loans or bonds to finance the
lease is $600,000.00.
2)
The estimated value of the interest to be conveyed or leased,
determined at the highest uses permitted under the plan, is not less
than $275,000.00.
3) The sum of the lease payments for the original term of the Lease and
Option to Purchase, exclusive of any extensions, is $10.00. The
reason for disposition at less than fair market value is as follows:
The parking lot expansion is necessary to encourage the expansion of and
creation of new jobs by Rockwell, The acquisition of land for use as
parking would be non-economic for Rockwell. The Agency and the cOlDIDunity
will receive. the benefits of increase in the employment base and
expansion of economic activity by Rockwell as a result of the performance
of the activities contemplated by the Agreement which is anticipated to
include significant local procurement.
Rockwell obtained leases (with options to purchase) on two buildings,
with square footage totalling 47,000 square feet, to the east of their
current facility on Cooley Court. Tbe following is a sUlDIDary of the
impact of this expansion on the City of San Bernardino:
o
o
o
"--
~ <J. _ &
--
o
Investments:
Parking Improvements
Electronic laboratory
equipment & improvements
Telecom & computer
equipment
Furniture & office
equipment
Tenant Improvements
TOTAL New Assessed Value
Yearly new tax increment from project:
Other City benefits from project:
-
o
$ 300,000
1,600,000
2,100,000
3,000,000
3,000,000
$ 10,000,000
$100,000
Average number of jobs per year 250
over 5 years
Because of the significant benefits to the City and Redevelopment Agency,
it is felt that the lease rate of $1.00 a year to Rockwell is justified.
Should the option to purchase be exercised, the price would be the fair
market value at the time of exercise, as determined by appraisal.
2339H