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Home My WebLink AboutR04-Redevelopment Agency RYVELOPMENT AQENCY-QQUEST FOR~ISSION/COUNCIL UION From: Glenda Saul, Executive Director ...- Subject: UDAG GRANT APPLICATIONS, AUTHORI- ZATION FOR STAFF TO PREPARE TWO GRANT APPLICATIONS AND SET PUBLIC HEARINGS __ept: Redevelopment Agency Date: September 28, 1987 Synopsis of Previous Commission/Council action: Recommended motion: (MAYOR AND COMMON COUNCIL) A. Instruct Staff of the Redevelopment Agency to proceed with the preparation of .'- Urban Development Grant Applications for the following two projects: - (1) "The Club" - an IS-acre project located Boulevard, Waterman Avenue and the approximately 170,500 SF of club type chain. generally in the vicinity of Redlands railway tracks for development of retail facilities and one fast food (2) Sunwest Development, a IS-acre project located generally in the area bounded by "E" Street, Hospitality Lane and Hunts Boulevard, for the development of 521,300 SF of office buildings and one parking structure. B. Move to set the following public hearings on said UDAG applications: November 2,1987,11:00 a.m. JY_ // November 16, 1987, 11:00 a.m. ,~A:~ _~.-{J . Signature Contact person: Glenda Saul Phone: 383-5081 Supporting data attached: YES 3rd FUNDING REOUIREMENTS: Amount: $ N/A Ward: Project: SV and SEIP No adverse Impact on City: Date: 10/5/87 ~uncil Notes: ...... n7n?Jl/'5T ITI'MM 10/5/87 Agenda Item No, /L,,- 4 ,."", "", c ,_ -' :, I REDEVELOPMENT AGENCY-REQUEST FOR Co.tISSlON/COUNCIL ACTION '-' STAFF REPORT Staff and the Redevelopment Committee recommend proceeding with the preparation of two Urban Development Action Grant applications and setting the required two public hearings. BACKGROUND On August 14, 1987, Staff met with Mr. Scott Rodde of the National Development Council to discuss the possibility of participating in UDAG' s upcoming December application round. The following projects were discussed with Mr. Rodde: (1) Simchowitz Project - "The Club" located within and just outside the South Valle Project Area. (2) Simchowitz Project - "Sunwest Development" located in Southeast Industrial Park. (3) Central City Business Partnership - Multitenant business park - desireous of acquiring Agency owned site at Ria1to and "E" Street - Overlay Zone. (4) Central City Mall - Parking structure, major department store. ~",""" (5) First Federal Savings - Phase II, 6th and "D" Streets. ......... (6) Northwest Industrial Park - 40 acre site, Hank Bickler/Dave Hawley. PROPOSED PROJECTS Following review of the projects and meetings with several of the developers, Central City South Committee and with the Redevelopment Committee, the following two projects were identified as strong candidates for UDAG funding for HUD's upcoming December round. 1. "The Club" a 18-acre project to be developed by The Simchowitz Corporation. The Club is located within and just outside the South Valle Project Area. This proposed project is planned to include three retail club type facilities and one fast food chain, totaling approximately 172,500 SF with an estimated development value of 517,900,000. Due to the excessive cost of public improvements (storm drains, traffic signals, etc.) the project could not proceed without assistance. In summary: ~-. Size of project: Est. Value: Est. Jobs Est. Sales Tax (Yr.) (h.oo SF) Est. Util Tax (.045 SF) Est One-time Fees (.015/5) .--- 172,500 SF (Retail) 517,900,000 345 5700,000 57, 750 5270,000 0702H/SL/RMM 10/5/87 r ""-' #"' ...... ,/ ..,"', ...) Possible UDAG Participation: '- UDAG Ratios Jobs (345) 1/$10,000 of UDAG 20% of Total Cost 53,450,000 $3,580,000 2. Sunwest Development - SEIP Sunwest has completed seven of thirteen office buildings in Sunwest Professional Park. An Owner Participation Agreement covers the development of buildings 4-12. Mr. Simchowitz just recently received approval of a height variance for Building 8. He would like to increase the height for the balance of his buildings (9-13). The proposed increase in square footage of buildings 10-13 would require more parking than is available on the site. A parking structure could provide the required shortfall. Mr. Simchowitz has asked for consideration of a UDAG grant application due to the extra cost to his project attributable to a parking structure. In summary: "."'P'o.. Size of project: 521,300 SF (Office) Four 5-Story Office Bldgs & Parking Structure Est. Value: $38,000,000 Est. Jobs 740 (1/700 SF) Est. Uti! Tax $625,000 (1.25 SF) Est One-time Fees 5570,000 - Possible UDAG Participation: UDAG Ratios Jobs (740) 1/$10,000 of UDAG 20% of Total Cost 57,400,000 $7,600,000 GRANT WRITING ASSISTANCE If the Council approves the above projects, the applications must be prepared for review by the Council and public by the second public hearing (5 weeks). The Agency has an agreement with the Community Development Department of the City for grant writing. We have the authority under this agreement to request services under this agreement up to $3,500. Ken Henderson feels that his staff can prepare two of the applications. /-".... Mr. Henderson has proposed a monthly billing based upon actual hours spent on the project not to exceed $3,500 for each of the two grants (approximately $21.00 per hour x 166.6 hours - 53,500; 166.6 hours - 4 weeks). He does feel, however, that - 0702H/SL/RMM 10/5/87 ",,,,>-,~ ....... d=-"~ - ,,?-. -- , \"... ""- "L-J' " very likely the costs could run over $3,500 each. By November 2, 1987, we should be able to determine if the costs will exceed $3,500 each, at which time we will present a report to the Committee and Commission approving an increase in price. 4 Attachments: (1) Tentative Action Schedule (2) Summary of UDAG "Four Points" and Ratios (3) Notice of Public Hearing (4) Maps 0702H/SL/RMM 1015/87 -"""'- "- f~. '- -. ......... c September 14, 1987 September 21, 1987 September 24, 1987 October 5, 1987 October 6 thru October 30, 1987 October 26, 1987 November 2, 1987 November 16, 1987 November 18, 1987 December 1, 1987 January 15, 1988 February 1, 1988 0702H /""-'. , -.J "-' '-" Tentative Action Schedule Information received from developer. Staff report prepared for Redevelopment Committee consideration. Redevelopment Committee Meeting to consider and recommend preparation of application. Mayor and Council authorize preparation of application and set hearings for November 2 and November 19, 1987 (two hearings required). Staff prepares application with input from the developer. Notice of Public Hearing published in newspaper. Mayor and Council conduct First Public Hearing. Application summary available for public review. Mayor and Council conduct Second Public Hearing and approve submission of application. Staff submit application to HUD. Last day for receipt of application by HUD. Financial commitment and other evidentiaries received by HUD. Notification by HUD as to award. 0702H/sL/RMM 10/5/87 ;' ...... ,,-..., -- ""'" -t No. 118 Jan. 1984 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA 'Ii... .. tii1EMORANDUM DATE August 19, 1987 TO FILE FROM Sandra A. Lowder, Deputy Director SUBJECT UDAG CRITERIA The followi ng I s an outli ne of notes taken on August l4, 1987. durl ng a meeting with Scott Rodde of National Development Counsel: A) Four Key Points 1. Project cannot proceed without assistance - referred to as the "But for clause". '- Evl dence - Need ten year proforma without UDAG and with UDAG If the Internal rate of return 1 s less than acceptable without the UDAG - need Is established. Less then l2% Is usually considered unacceptable. 2. A firm flnanclal commitment must be secured for the construction loan - subject only to the UDAG: Le. Total Project Less proposed UDAG Firm Constructlon Commitment $lO,OOO.OOO 2.000.000 - $8,000.000 This commitment must be signed by an authorlzlng officer followl ng Its Governi ng Board's approval (I f such approval Is the typical procedure). If a Letter of Credit (LC) Is used for the commitment - it must be from an institution with a net worth of three times the LC. Thl s net worth statement must be from a certified accountant. .- ,/.".,~ '- I"'"" ~ ~'1 '-' ~ If the project entity Itse 1 f has a net worth of three times the construction loan, a certified audit to this effect can be used In lieu of the firm commitment :) ...- '- 3. NOTE: This commitment must be available and submitted to Hue 45 days after submittal of application. Evidence of Site Control - option to purchase Is evidence. Escrow contingent upon receipt of UDAG also will do. If the site Is owned by the Developer the financing for the site can not be included as a cost of development. The creation of jobs must be evidenced. - 1 job to every 250 SF of development - HUD will grant no more than $lO,OOO per job (see ratios) 4. B) Ratios l. Jobs: l/250 SF l/$lO,OOO I.e. ~ lOO,OOO SF - 400 400 x $lO,OOO - $4,000,000 assistance 2. Grant: 20t of total project cost - If "need" is evidenced. I.e. $20,000,000 project - $4,000,000 assistance . C) Timing 1. Next round - December l, 1987, application must be received by HUe by this date. NOTE: Application needs to be prepared, Public Hearing held & approved by Commission - all by November l6, 1987 (last Council Meeting In November). 2. Financial Commitment - January l5, 1988 3. Award - February l, 1988 ,.,.- Not all eligible projects are awarded during thl s first round. If not awarded but determined "eligible", the project is held over to the next round for consideration. The next round Is approxImately three months thereafter. '-' ;""""'-" '-- '-' - '- .- '-' r-.... /~" , - - - D) Grant Funds The Grant I s awarded to the CI ty to be 1 ent to the Developer. Typl ca lly, the I nterest rate is between 21 - 81 depend I ng on the proforma. The CIty can also negotIate a partIcIpatIon In the project. All this Is done through negotIations with the Developer, the CIty and HUD. Data needed to proceed l. Ten year project proforma wIthout UDAG partIcIpatIon 2. Ten year project proforma wIth UDAG partIcIpation 3. CommItment letter - uncondItIonal but for the UDAG 4. Employment ProjectIons E) Sandy Lowder Deputy DIrector SL:mv:0702H c ".,.... "' - --' ,i ..- NOTICE OF PUBLIC HEARING - The Mayor and Common Council of the City of San Bernardino will conduct Public Hearings on two propoaed Urban Development Action Grant (UDAG) applications on the following dates and times: 1st Hearing - November 2, 1987, 11:00 a.m. 2nd Hearing - November 16, 1987, 11:00 a.m. The hearings will be held in the Council Chambers of City Hall, 300 North -D- Street, San Bernardino, California. The purpose of the Public Hearings is to obtain the views of citizens on the submission of UDAG applications to assist in funding the following projects: (1) -The Club- an approximately l8-acre project proposed to be developed by the Simchowitz Corporation in the vicinity of Redlands Boulevard, Waterman Avenue and the railway tracks for the development of approximately 170,500 SF of club type retail facilities and one fast food chain. (2) Sunwest Development an approximately l5-acre project located generally in the area bounded by -E- Street, Hospitality Lane and Hunts Boulevard, for the development of 521,300 SF of office .~ buildings and one parking structure. Copies of a summary of the projects will be available for review by October 30, 1987. Copies of the draft applications will be available by November 13, 1987, at the office of the Redevelopment Agency of the City of San Bernardino, City Hall, 300 North -D- Street, San Bernardino. Those citizens interested in more details may contact Lisa Dickey, 384-5065, or Sandy Lowder, 384-5081. .....'- - 0702H/SL/RMM 10/5/87 c } '- ,.-. '-" . 'f. -1 If ,- ',"---' i i i I I i i i" ; liD I i i i i i i i i i i r------, ~ I I J I II ~ I I .. I ,r! I I ' I I II J I g I I I I I ~~ ""., ...... """ ~ "-",,, '. ...) "'" " J I U,nlNO ~TO.II O."N HUNTS ~ANE._ -:--= I I, . iG .. t . .. . . L-J 1 . . I . I I c ~~ I b c;j; I );. . Ii) . .. Z .. III," ~ L_____ . c .. .. C'tZ '-----II I I roo c_ ! I I . .Z 0 " Ii) . i I I. ,. . ~ - .. 2-v ~ II; .. "'21 ; \ 1I 0 !:lo .r- . . I I. :- .. -V ~ . \ .Z 0 .. .. I~ Ul II ~ II I. ~ ~ . .. r- i I~ \? ~ .0 ~ . I 1 . I i. WATERMAN . AVENU!....._. ._~T_H~__ CLU;6" r . , / ' \" ....... ~~ 'lr-",...- ~ - ,....... ! . ~ pili, ~~~ 6 U~ ell ~~~ : =~ ~lru z 1;: ~ lIDliiiiIliiiiI ~ i~-4 .IFJID~ : ~ t? ~ 7J b ~ [6 ~ J> IF r- " I i , . ..~ . . . . . ~ . . 'lI III E III n -t . . . . , . . h~ h '--{jJ h '~ ~, ~ ~:=;rji"\h ~ f l~ 'fr- . . ..::..! r- i ::j (/) r I r ': , Q.~\I O~ ~~ "I it N/DUFF Q/RIERSO BnNzu:~'iSO(IFHH tH{ ~, "" SUNWEST DEVELOPMENT I -- OWITZ CO"P. TMlallllcH",," ___ I ~ ~:;.:- -"':.~=:- - . - - .0............... """""'':'_-- _.._~. -