HomeMy WebLinkAboutR06-Economic Development Agency
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ECOQMIC DEVELOPMENT AGQCY
OF THE CITY OF SAN BERNARDINO
REOtJRST FOR COMMISSION/COUNCII~ ACTION
FROM:
TIMOTIIY C. STEINHAUS
Agency Administrator
SUBJECT:
SAN BERNARDINO
COUNTY LAW
LIBRARY
RETENTION
DATE:
May 27, 1994
8"'0"0,,111 0' Prll!!vtGDlII Commllllllon/Connetl/Commtttll1ll! Aetlonlll\!
The Commission previously approved in closed session the purchase of the old Security Bank building at 402 North
"D" Sl!eCt as the new quarters for the County Law Library
On April 18, 1994, the Community Development Commission authorized the Executive Director to execute an
Agreement of Purchase and Sale and Joint ll8crow Instructions between Bank of America and the Redevelopment
Agency and set a joint public hearing for May 16, 1994, to consider the approval of a Disposition and Development
agreement with the Law Library.
On May 16, 1994, the Community Development Commission held a Public Hearing, as required under Community
Redevelopment Law, and approved a Disposition and Development Agreement with the Law Library and an
Assignment and Assumption Agreement with B ank of America and ratified its prior apptoval of escrow instructions
with Bank of America.
Reeommllndlld Motlonf,,)!
(Community DIlVf!I~Dment Commlulon\
MOTION:
THAT TIm COMMUNITY DEVELOPMENT COMMISSION APPROVE TIm EXPENDITURE
OF AN ADDmONAL $600,000 TO PURCHASE 402 NOR'IH "D" STREET FROM BANK OF
AMBRICA WI1H SAID AMOUNT TO BE REIMBURSED TO TIm A CY BY TIm LAW
LIBRARY UPON SALE OF TIm PROPERTY TO TIm LAW LIB
TIM . STEINHAUS
Agency Administrator
Contact PCl'8On(s): Timothv C. SteinhRUR(John Wood
Phone: 5081
Project Area(s): ("'''"tral City North (CCNl
Ward(s): One m
Supporting Data Attached: Staff Report
FUNDTNG REQUIRBMENTS: Amount: $ 600.000
Source: Bond Proceeds
Budget Authority: Reqpested
Commission/Council Notes:
TCS:JMW:lbryl.cdc:jlm
COMMISSION MEETING AGENDA
MEETING DATE: 06/06l1ll!l4
Agende Item Number: ~
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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San Bernardino County Law Librarv Retention
The San Bernardino County Law Library transaction has been a lengthy and complex process.
Progress, however, is nearly complete toward closure of the acquisition and disposition of the
Bank of America building. Currently, all documentation is being finRIi".ed, with the
expectation of an escrow closing date with Bank of America occurring as early as June 7,
1994.
The transaction has been structured in such a way as to allow the Agency to take title to 402
North "DOl Street from Bank of America forthwith. After title has passed to the Agency, a
lot-line adjustment will be recorded and work will begin toward removing asbestos from the
building. The Law Library will not accept title to the building until it receives a certification
pronouncing it substantially free from asbestos containing materials.
Previously, the plan was to have the Agency remit $400,000 and the Law Library $600,000
into the escrow between the Agency and Bank of America. Upon completion of asbestos
removal, the Bank would pay the approximately $310,000 fee to the asbestos removal
contractor and retain approximately $690,000 as sale proceeds. The Law Library recently
clarified that it will only remit its $600,000 portion of the purchase price when it has firm
knowledge that the asbestos has been satisfactorily removed from the building.
The revised plan would be for the Agency to remit $690,000 into the escrow between it and
Bank of America. Upon closing with the bank, the Agency will have title to the property and
the bank will have assigned its position in the asbestos removal contract to the Agency. The
work will be performed and the Agency will pay the approximately $310,000 contractor's fee,
under the asbestos abatement contract assigned to the Agency.
The Disposition and Development Agreement binds the Law Library to a purchase price of
$600,000 for the building, the land beneath it and the land required for a 5,000 square foot
building expansion, provided that the Law Library is satisfied that asbestos removal has been
completed. Once this has been accomplished (the removal process is expected to be
completed within four (4) months), escrow can close between the Agency and the Law
Library, with the Agency being reimbursed the $600,000 which was previously advanced.
Thus, upon closing of this second escrow, the net expenditure by the Agency will have been
the $400,000 which was previously approved by the Commission.
TCS:JMW:lbryl.cdc:jlm
COMMISSION MEETING AGENDA
MEETING DATE: 06/0611994
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Allende Item Number:
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ECONOMIC DHVllLOPMBNT AGENCY
ST AFF REPORT. SAN BERNARDINO COUNTY LAW LIBRARY RETENTION
May 27, 1994
Page 3
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In summary, significant progress has been made toward completing the Law Ubrary
transaction. The Commission's approval of the form motion will allow the escrow between
the Agency and Bank of America to close promptly, with the asbestos removal work
commencing shortly thereafter.
adoption of the form motion.
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TIMOTHYC. STEINHAUS, Administrator
Economic Development Agency
TCS:JMW:lbryl.cdc:jlm
COMMISSION MEETING AGENDA
MEETING DATE. 0610611994
Agenda Item Number: ~