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Home My WebLink AboutR05-Redevelopment Agency . ~.VELOPMENT Aft.NCV.~ST FOR ~ISSION/COUNCIL A. ., EKun: Glenda Saul, Executive Director .- Dept: Redevelopment Agency Subject: CONDUCT SECOND PUBLIC RF.AllI~G REGARDING UDAG APPLICATION - SUNWEST DEVELOPMENT, HOSPITALITY LANE - AND . HUNTS BLVD AND APPROVE SUBMITTAL TO DEFT. OF HOUSING AND URBAN DEVELOPMENT. kE's:?uJnw ~fl':D j/-It,-1) Date: November 10, 1987 Synopsis of Previous Commission/Council ection: 10/5/87 - Council authorized staff to proceed with preparation of UDAG application for the Sunwest Development Project and set public hearings for November 2, 1987, and November 16, 1987. 11/2/87 - First Public Hearing conducted. (MAYOR AND COMMON COOllClL) Recommended motion: Open Hearing - '- Close Hearing - MOVE TO ADOPT A RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND SUBMIT AN APPLICATION TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A PORTION OF THE SUNWEST PROFESSIONAL PARK AND RELATED PARKING STRUCTURE. /~~ <:k~ Signature Contact person: Glenda Saul Phone: 383-5081 3rd Supporting data attached: YES Ward: FUNDING REQUIREMENTS: Amount: $ N/A SEIP/UDAG Project: Date: 11/16/87-<. No adverse Impact on City: (-. lcil Notes: --- 0832H/sL/RMM 11/16/87 Af7 Agenda Item No. -s-- , ~ -,....,..- """"' - "..I ""- ~' STAFF REPORT - A second Public Hearing has been scheduled for November 16, 1987, at 11:00 a.m. to hear public comments regarding the City's intent to submit a UDAG application on November 18, 1987, for financial assistance from the Department of Housing and Urban Development for the Sunwest Development Project. If approved by the Council, the application will be submitted to HOD for the December 1, 1987, UDAG round. SUMMARY OF THE SUNWEST PROFESSIONAL PARK Developer: Sunset Development. Location: The Sunwest Professional Park is located within the Southeast Industrial Park Redevelopment Project Area. The development is generally bounded by "E" Street on the west, Hospitality Lane on the south, and Hunts Lane on the east. Proposed Development: Four 3-story office buildings and a parking structure. - Sunwest has completed seven of thirteen office buildings in Sunwest Professional Park. An Owner Participation Agreement covers the development of Buildings 14 through 112. Mr. Simchowitz, Sunset Development, recently received approval of a height variance to 4 stories for Building 18. He would like to increase the height to 5 stories for the balance of his buildings (19 through #13). Building 19, when constructed, would develop surface parking required to meet city code. Then upon development of Buildings 110 through 113, a combination of surface parking and construction of a parking structure will provide the necessary parking for the buildings. Mr. Rodde, National evelopment Council, felt that the only way we should proceed with an application covering the four S-story buildings would be if a motion was approved by the City Council allowing the increase in height. Evidence of this motion would need to be furnished to HUDby January 15, 1988. Due to the time required for this process and our tight UDAG time frame, Mr. Rodde has recommended that the project be submitted on the basis of 3-story buildings and a parking structure. --- Once the height issue is resolved and if a favorable conclusion is reached allowing increased height, an amendment to our application could be processed. '-~! c ....- -- 0832H/sL/RMM 11/16187 c r'" ~ .:) _J ,~ '- But For Clause: Due to the excessive cost of a parking structure the project cannot proceed without assistance. Structure (S-story office bUildings) 1,397 spaces h2,689,092 Structure (3-story office bUildings) 800 spaces $7,349,000 In Summary: Four 3-Story Office and Structure Square footage 312,600 SF Estimated value (Includes $57,333,265 land & parking structure) - f "- Estimated jobs 1,153 Estimated utilities tax $390,750 (h.25 SF) Estimated one-time fees $800,000 <1.5% Dev) Possible UDAG Participation: (a) Job Ratio 1/ho,ooO of UDAG hl,S30,000 OR (b) Percentage Ratio 20% of total cost $11,000,000 (19.7%) Four S-Story Office and Structure 521,000 SF $88,544,428 1,900 $650,000 h,2S0,OOO h9,000,000 OR 517,000,000 (19.2%) UDAG Repayment 20 year loan to be repaid by Sunset Development from available net fcash flow at 6% interest. -",,-, '- City to participate in 19.7% of net profits upon sale. 0832H/sL/RMM 11/16187 " 1- ~- -- ~. ~ " 2 i.. . 'C 3 . ill ] 0 9 i ... ~ t HW .. D=O . . . D=O C : '.~......- ~--' c. c . . . .. .. . . . .. i~ \ ~) \, I · .' I ii , - EASON IDUff IlZUElO/Al 8R ~.U.o(Hl'f.s....c.~_._ ~"':~~':. ~""...- ~. ...~..... I _ - . -.... t"'" \...- ::) n ~. !~~ I~ 2! 91~7J . ~~rnm~@ Ii tI' ~ tiW rnru ... 1F~1ID . ~ 91 ~. .. ". .. .. ". .. ~.. - ". DEVELOPMENT SUNWEST I - .'TZ c.... ....=.--- l~ ~- -~-::=- . - - 11II a.... ...........=. .---.II'&W' ._ " . "'\ . ) c ~ p i CI z 0 G) J ~ ~ 0 = IF ,.. i '. 1 l -, . , J ~ n ... ,.. i =4. (II -- -- ,-.. ,,'- "- /"'" "- '- 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 0832H I ^,.----- - '- ...... ........ -'"~ 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 HOD. Last day for receipt of application by HOD. Financial commitment and other evidentiaries received by HOD. Notification by HOD as to award. <>:~ 0832H/sL/RMM 11/16187 ""- ,-,. - --- ,........... - 20 __J ..-.... .....'..... - '-" 1 2 3 4 5 6 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND SUBMIT AN APPLICATION TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A PORTION OF THE SUNWEST PROFESSIONAL PARK AND RELATED PARKING STRUCTURE. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino is 7 authorized and directed to execute and submit an application to 8 the Department of Housing and Urban Development for an Urban 9 Development Action Grant for a portion of the Sunwest 10 Professional Park and parking structure, and the Mayor is 11 12 authorized all understandings and assurances to execute contained .in or required for such application. The proposed 13 development is located within the Southeast Industrial Park 14 Redevelopment Project Area and is generally bounded by "E" 15 Street on the west, Hospitality Lane on the south, and Hunts 16 Lane on the eas t. A copy of the application is on file and 17 available for public inspection in the Office of the Executive 18 Director of the Redevelopment Agency of the City of San 19 Bernardino. SECTION 2. The Mayor of the City of San Bernardino is 21 authorized to act as the City's official representative in 22 connection with the Urban Development Action Grant application. 23 I HEREBY CERTIFY that the foregoing resolution was duly 24 adopted by the Mayor and Common Council of the City of San 25 26 27 28 Bernardino at a meeting thereof, held on the day of , 1987, by the following vote, to wit: "''''~'> '- ,- ""'" ,.....~ ,.' . "- 1 2 AYES: ,.,.'"'-, ~.."~;, 3 NAYS: 4 5 ABSTAIN: 6 7 8 '- _/ ...... Council Members City Clerk The foregoing resolution is hereby approved this 9 day of . 1987. 10 11 Mayor of the City of San Bernardino 12 Approved as to form and legal content: '-' 27 28 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {~