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Home My WebLink AboutR03-Redevelopment Agency . RE&tVELOPMENT AGENCY-R.QuEST FOR ~MMISSION/COUNCIL A~ION ~Lom: Glenda Saul, Executive Director Subject: OPERATION SECOND CHANCE ~t: Redevelopment Agency Date: August 29, 1985 Synopsis of Previous Commission/Council action: 06-05-75 Resolution 3069 authorized lease of land to Operation Second Change (OSC) for the development of a Public Enterprise Center. 10-06-80 Resolution 4106 - Disposition and Joint Development Agreement with Operation Second Chance for adjacent property. 01-09-84 Resolution 4567 authorized Amendment to Lease Agreement (unexecuted). 06-17-85 Motion to declare OSC in default (continued). (Continued on second sheet) Recommended motion: (MAYOR AND COMMON COUNCIL) RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FIRST AMENDMENT TO LEASE WITH OPERATION SECOND CHANCE, INC., RELATING TO THE LEASE OF '- PORTION OF 1505 WEST HIGHLAND AVENUE, SAN BERNARDINO, FOR LIBRARY PURPOSES, AND AUTHORIZING FINANCE DIRECTOR TO MAKE PAYMENTS DUE UNDER LEASE TO REDEVELOPMENT AGENCY FOR CREDIT TO OPERATION SECOND, INC. (COMMUNITY DEVELOPMENT COMMISSION) - RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF A FIRST AMENDMENT TO LAND LEASE BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND OPERATION SECOND CHANCE, INC., AND REPEALING RESOLUTION NO. 4567 ~~d/ / Signature Contact person: GLENDA SAUL Supporting data attached: YES Phone: 383-5081 6 Ward: FUNDING REQUIREMENTS: Amount: $ N/A Project: No adverse I mpact on City: Date: September 9, 1985 ncil Notes: - 1311.1 1m Agenda Item No. ~ "- "- - ,) s..opsis of Previous Commission/Council action: (con't.) '- 07-15-85 Motion to continue to 8-5-85 in order to receive report from Ways and Means (Sub committee) 08-05-85 Continued to 8-19-84 to hear Ways & Means report. 08-19-85 Continued till Ways & Means recommends action - - . Clk OF SAN BERNARD~O - REQU.QT FOR COUNCIL AC.riON STAFF REPORT '- In June of 1975, the Redevelopment Agency entered into a Lease Agreement with Operation Second Chance (OSC) under the terms of which OSC leased property from the Agency upon which to build the Public Enterprise Center. As of August 6, 1985, OSC is 15 months behind in payment of the lease -- a total of $26,250 ($1,750. per month). In January of 1984, the Commission approved an Agreement whereby the City's library lease payments would have been made directly to the Agency, thereby alleviating the long delay in payment by OSC. OSC declined executing the Agreement. On June 17, 1985, staff requested that the Commission declare OSC in default and instruct the attorney to undertake appropriate legal action. The item was referred to Ways and Means, which formed a subcommittee to resolve the issue. Ways and Means met on August 20, 1985 and recommended the following actions: 1. The outstanding indebtedness ($26,250 as of 8-6-85) shall be added to the end of the lease. 2. The monthly Inghram Branch Library payment, made by the City, shall be applied toward the lease payment. ($2,000 per month $1,750 shall apply toward the existing lease payment owed by Operation Second Chance. The additional $250 shall be applied towards the outstanding overdue lease payments.) '-' 3. Councilmember Frazier and Estrada shall serve as City 1iason to the OSC recovery committee. Staff recommends approval of the attached agreements. 1311J/OJ 08-29-85 '-- 75-0264 (<.. 'D 4- , . ., . ~ - - ('''' '-' ., J " " J WAYS , MEANS COMMITTEE August 20, 1985 Attendance: Councilman Steve Marks - Chairman, Councilwoman Esther Estrada, Councilman Dan Frazier, Bobby Bivins, Elijah Single- tary, John Dukes, Vivian Nash, Elvin Ricks (Eaves), Frank Stallworth (Ayala), Dick Shook (Leonard), Sardy Johnson, Frances Grice, Charles Amis, Steve Lilburn-URS, Glenda Saul, 01en Jones, Jr., Allen Briggs, Jack Matzer, Ray SChweitzer, Sarvey Feit (Sun), Valerie Pope-Ludlam, John Ludlam, Wesley ~ferson. . OPERATION SECOND CRANCE: Committee recommends that lease agreement be restructured by RDA to allow OSC indebtedness of $22,750 to be added to the end of the lease period. The monthly Inghram Branch Library payment, made by the City, would be applied toward payment of the lease. Councilmembers Frazier and Estrada are recommended to serve as City liaison representatives to the .soon-to-be formed. recovery advisory committee. They would 1) assist and monitor actions required to stabilize and sustain the financial operation of OSC and 2) assist in developing a full fledged support system to programatically implement and sustain a combined City/OSC ef~ort for maximum community benefit. ~NTERPRIZE ZONE: The Committee received reports from Glenda Saul, John Dukes (consulting group) and Steve Lilburn (URS). A timetable (attached) was distributed. Participants were advised that all policy issues would be brought to the full Council's attention through the Committee. The Committee pledged their all-out support and commitment. RDA was directed to hold the necessary EIR/EIS meetings and make certain everyone involved is notified. Feed-back from participants at the meeting indicated that not all interested parties knew of the first meeting, even though it was announced in the newspaper. The consultant group, URS and RDA were directed to coordinate all efforts and keep the Committee fully advised throughout the project. Mr. John Dukes, of the consultant group, explained the Enterprize Zone point system and the importance of having City proposed tax incentives in the commercial area of the zone operational ~ ,- "- '- '- - , /",,", V ) - 1 2 3 4 5 6 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FIRST AMENDMENT TO LEASE WITH OPERATION SECOND CHANCE, INC., RELATING TO THE LEASE OF A PORTION OF 1505 WEST HIGHLAND AVENUE, SAN BERNARDINO, FOR LIBRARY PURPOSES, AND AUTHORIZING FINANCE DIRECTOR TO MAKE PAYMENTS DUE UNDER LEASE TO REDEVELOPMENT AGENCY FOR CREDIT TO OPERATION SECOND CHANCE, INC. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1 The Mayor of the City of San Bernardino is hereby 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 authorized and directed to execute for and on behalf of the City of San Bernardino, that certain First Amendment to Lease with Operation Second Chance, Inc., relating to the lease of a portion of 1505 West Highland Avenue, San Bernardino, for library purposes, a copy of which is attached hereto as Exhibit -1- and incorporated herein by reference as though fully set forth at length. SECTION 2. The Finance Director of the City of San Bernardino is hereby authorized and directed to pay over to the Redevelopment Agency of the City of San Bernardino all sums due and to become due from City to Operation Second Chance, Inc., for the Dorothy Inghram Library lease for credit against the lease payments due to the Redevelopment Agency of the City of San Bernardino from Operation Second Chance, Inc., under that certain Land Lease existing between the Redevelopment Agency of the City of San Bernardino and Operation Second Chance, Inc., made the 9th day of July, 1975, such funds to be applied first to make current payments, and any excess to apply to the outstanding indebtedness being deferred to the expiration or termination of said Land Lease. \....- --... -- - "r.", J - r"'",\ V 1 2 3 4 5 6 7 8 9 10 11 12 13 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the , 1985, by the following vote, to day of wit: AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day 14 of , 1985. 15 16 17 18 Mayor of the City of San Bernardino Approved as to form: ,~-f{&~ City Attorney ~ 2 - - r ..~, ." ,..,/ ~......... '"" '""'''- '- FIRST AMENDMENT TO LEASE BETWEEN OPERATION SECOND CHANCE, INC., AND THE CITY OF SAN BERNARDINO FOR DOROTHY INGHRAM LIBRARY THIS AGREEMENT constitutes a First Amendment to that certain Lease Agreement between OPERATION SECOND CHANCE, INC., as Lessor and the CITY OF SAN BERNARDINO, hereinafter .city,n as Lessee, effective as of February 15, 1982. The parties hereto agree: 1. Recitals. ~ A. The parties have heretofore entered into a lease effective February 15, 1982, relating to the lease of a portion of 1505 West Highland Avenue, San Bernardino, for library purposes. B. City has in recent months been withholding payments due on the lease, because the Lessor, Operation Second Chance, Inc., has failed to pay to the Redevelopment Agency of the Cit~ of San Bernardino, certain sums due from Operation Second Chance, Inc., to the Redevelopment Agency of the City of San Bernardino under a Land Lease between those two agencies. C. Representatives of all parties have met, and have negotiated a compromise, whereunder all payments now due under the City lease, and payments to become due, shall be paid directly to the Redevelopment Agency of the City of San Bernardino, and any excess over the amount of monthly payment due and to become due shall be credited toward the amounts ~ owed by Operation Second Chance, Inc., to the Redevelopment Agency of the City of San Bernardino under its Land Lease, and the amount now owed by Operation Second Chance, Inc., to the Redevelopment Agency shall be deferred accordingly. 1 '- -- v ,,:) ] J 2. Implementation. '-' A. Section 3 entitled .Mutual Covenants. of the lease between Operation Second Chance, Inc., and the City of San Bernardino, is amended by adding Subsection h as follows: n(h) The Lessee is authorized to make all payments due and to become due under this lease by paying the sums due thereunder to the Redevelopment Agency of the City of San Bernardino, for credit by the Agency against current lease payments, with any excess to be credited against the amount now past due, which past due amount shall be treated as an nadd onn to the end of the lease. The amount now past due from Operation Second Chance, Inc., to the Agency is $26,250 as of August 6, 1985. The monthly payment presently due from '-' the City of San Bernardino to Operation Second Chance, Inc., is $2,000. The monthly payment due from Operation Second Chance, Inc., to the Redevelopment Agency of the City of San Bernardino is $1,750. The $250 difference shall be credited against the outstanding indebtedness, which shall, except for such periodic payments, be deferred and be payable upon the expiration or termination of the lease between the Redevelopment Agency of the City of San Bernardino and Operation Second Chance, Inc.n B. In all other respects, the lease between the City of San Bernardino and Operation Second Chance, Inc., shall remain in full force and effect. IN WITNESS WHEREOF the parties have executed this '-' agreement effective the day of , 1985. 2 L '-- --- ~ - '-" CITY OF SAN BERNARDINO By Mayor ATTEST: City Clerk Approved as to form: dZ~lr8~ City Attorney ....."''''- " , '..J OPERATION SECOND CHANCE, INC. And by By Executive Director Controller 3 . ....... - '-' c - - .<"." .r'. '-" ""'" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 BYc:?~1. ~ 21 Allen R. Briggs- RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF A FIRST AMENDMENT TO LAND LEASE BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND OPERATION SECOND CHANCE, INC., AND REPEALING RESOLUTION NO. 4567. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman and Secretary of the Community Development Commission of the City of San Bernardino are hereby authorized and directed to execute for and on behalf of the the Redevelopment Agency of the City of San Bernardino a First Amendment to Land Lease between the Redevelopment Agency of the City of San Bernardino and Operation Second Chance, Inc., a copy of which is attached hereto as Exhibit -1- and incorporated herein by reference as though fully set forth at length. SECTION 2. Resolution No. 4567 is hereby repealed. ADOPTED: Approved as to form: AGENCY COUNSEL 22 23 24 25 26 27 28 . ~ '- r....... '-' roo, , -...I \ / ,,~- '-' FIRST AMENDMENT TO LAND LEASE BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND OPERATION SECOND CHANCE, INC. THIS FIRST AMENDMENT TO LAND LEASE between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO as Lessor and OPERATION SECOND CHANCE, INC., as Lessee, amends that Land Lease heretofore entered into on the 9th day of June, 1975. The parties hereto acknowledge and agree: 1. Recitals. a. The parties have heretofore entered into a Land Lease '-' dated the 9th day of July, 1975, whereunder the Redevelopment Agency of the City of San Bernardino leases to Operation Second Chance, Inc., the property upon which Operation Second Chanpe, Inc.'s Public Enterprise Center is situated. b. Operation Second Chance, Inc., is presently behind in payments under the Land Lease, in the amount of $26,250 as of August 6, 1985. c. The City of San Bernardino has in the meantime leased a portion of the premises from Operation Second Chance, Inc., for the Dorothy Inghram Public Library, and the parties now desire to enter into an agreement whereunder payments made by the City for the library shall be paid directly to the Redevelopment Agency of the City of San Bernardino for credit '-' of Operation Second Chance, Inc., 2. Implementation. 1 - - - - . c ..',...... ,..., v v l "..-"", a. The parties hereto do therefore agree that Section 2.2 shall be added to the Land Lease, to read as follows: -The lease payments provided for herein shall be made by direct payment from the City of San Bernardino to the Redevelopment Agency of the City of San Bernardino of all sums - due and owing and as they become due, under a certain lease between Operation Second Chance, Inc., and the City of San Bernardino, whereunder rent is due from the City to Operation Second Chance, Inc., in monthly installments of $2,000. The entire $2,000 payment per month shall be credited by the Redevelopment Agency of the City of San Bernardino to Operation Second Chance, Inc., to apply, first, to the monthly rents due and owing hereunder, with any excess credited to the ',- $26,250 deficiency that presently exists, which deficiency is hereby added on as due and payable upon expiration or termination of this Lease. All sums paid in excess of the $1,750 per month shall be credited against the sum added on at the end of the lease.n b. In all other respects, the Land Lease between the Redevelopment Agency of the City of San Bernardino and Operation Second Chance, Inc., entered into the 9th day of July, 1975, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this agreement effective the day of , 1985. - 2 . c , ~ "._~- -" '- ............ ~ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Chairman By Secretary Approved as to form: AGENCY COUNSEL dt-/ ~& ". By ,- Allen R. Briggs 3 - ,P,..... , J -.....I OPERATION SECOND CHANCE, INC. By Executive Director By Controller