HomeMy WebLinkAboutR23-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
DATE: March 23, 2011
SUBJECT: University Park Promenade and Shops, LLC -
Benefit Resolutions for certain public
improvements adjacent to North Park Boulevard
and University Parkway pursuant to the Owner
Participation Agreement
FROM: Emil A. Marzullo
Interim Executive Director
SvnoDsis of Previous Commission/Council/Committee Action(s):
On December 20, 2010, the Community Development Commission of the City of San Bernardino approved a Property Owner
Participation Agreement between the Agency and University Park Promenade and Shops, LLC.
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Recommended Motion(s):
(Mavor and Common Council)
A: Resolution of the Mayor and Common Council of the City of San Bernardino consenting to certain payments by the
Redevelopment Agency of the City of San Bernardino and making certain findings and determinations pursuant to Health
& Safety Code Section 33445 as to the benefit to the State College Redevelopment Project Area for the installation of
public improvements adjacent to the Public Rights-of-Way of North Park Boulevard and University Parkway (State
College Redevelopment Project Area)
(Communitv DeveloDment Commission)
B: Resolution of the Community Development Commission of the City of San Bernardino making certain findings and
determinations pursuant to Health & Safety Code Section 33445 as to the benefit to the State College Redevelopment
Project Area for the installation of public improvements adjacent to the Public Rights-of-Way of North Park Boulevard
and University Parkway (State College Redevelopment Project Area)
Contact Person(s):
Brian Turnbull
Phone:
(909) 663-1044
Project Area(s):
State College
Redevelopment Project Area
Ward(s):
5
Supporting Data Attached: 0 Staff Report 0 Resolution(s) D Agreement(s)/Contract(s) D Map(s) D Letter(s)
previously
FUNDING REQUIREMENTS: Amount: $ approved Source: EB-5/tax increment
Budget Authority:
2010-2011 Budget
Signature:
Emil A. Marzullo, In
cutive Director
Commission/Council Notes:
P:\AgendasIComm Dev CommissionlCDC 2011104-04-11 University Park Promenade and Shops 33445 SR.docx CO MMISSI 0 N MEETIN GA G END A
Meeting Date: 04/04/2011
Agenda Item Number: j2..:2,3
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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UNIVERSITY PARK PROMENADE AND SHOPS, LLC - BENEFIT RESOLUTIONS
FOR CERTAIN PUBLIC IMPROVEMENTS ADJACENT TO NORTH PARK BOULEVARD AND
UNIVERSITY P ARKW A Y PURSUANT TO THE
OWNER PARTICIPATION AGREEMENT
BACKGROUND:
In 2004, l.R. Watson and Associates Development Corp. (the "Developer") began development of a
subdivision of approximately 16.2 acres west of California State University San Bernardino ("CSUSB").
The Promenade and Shops consists of a 10-lot condominium subdivision comprising 13 Hillside detached
live/work units, 6 live/work units and 19 hillside townhomes, 64 cluster detached dwellings, 29 attached
town-house units with a recreation center, 35 mixed-use units, 1 corporate condominium unit, an
approximately 10,000 square foot University Club, a Newman Center for CSUSB students and 15,324
square feet of restaurant and commercial retail space. However, the CUP for these uses has expired, the
final uses will be determined based on market conditions and will require processing new entitlements in
the future. The Promenade and Shops will have a completed market value exceeding $55 million upon
completion. The project site is located across the street from CSUSB at the northwest comer of North park
Boulevard and University Parkway in the CG-2, Commercial General land use district.
CURRENT ISSUE:
On March 17, 2010, the Redevelopment Agency of the City of San Bernardino ("Agency") received a
request from the Developer for the University Park Master Planned Development, for financial assistance
for infrastructure and other public improvements to the street rights-of-way of University Parkway and
Northpark Boulevard. The proposed infrastructure and public improvements are located within the
boundaries of the State College Redevelopment Project Area, with the exception of the Plaza at University
Park, and the Plaza at University Park borders the portion of the redevelopment project area ("Project
Area") located northwest of the intersection of Northpark Boulevard and University Parkway and provide
significant benefits to the Project Area. The Promenade and Shops are part of the University Park Master
Planned Development which will serve as the gateway to CSUSB.
On December 20, 2010, the Community Development Commission of the City of San Bernardino
("Commission") approved an Owner Participation Agreement ("OP A") between the Agency and the
Developer where the Developer agreed to construct the infrastructure and other public improvements and
the Agency agreed to reimburse the Developer for said improvements in an amount not to exceed
$999,203. In addition, the Developer agreed that within 180 days after completion of said infrastructure
and public improvements, the Developer will begin grading for the 18.66 acres known as the Promenade
and the 2.67 acres known as The Shops. The Developer will be required to undertake a modified
competitive bidding process to assure the lowest price for the infrastructure and public improvements plus
State prevailing wages will be required to be paid on all such work. The construction of this project will
create a significant number of jobs. Economists have estimated that employment created by construction
expenditures generate 24 full-time jobs for 1 year per $1 million of expenditures. Using a conservative
$38,000,000 for construction would generate approximately 912 full-time jobs for 1 year.
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Meeting Date: 04/04/2011
Agenda Item Number: fZ~3
Economic Development Agency Staff Report
Infrastructure Improvements to North Park Boulevard and University Parkway
Page 2
Now that the Developer has commenced with the preparation of the precise engineering design on the
infrastructure and public improvements being undertaken by the Developer, it has been determined that all
the roadway and typical landscaping improvements are located within the boundaries of the Project Area.
The additional public improvement area known as the Plaza at University Park as illustrated on the map
attached to this Staff Report is located adjacent to but outside the boundaries of the Project Area. It is
necessary now for the Commission and the Council to consider adoption of the appropriate resolutions
pursuant to Health & Safety Code Section 33445 to allow for the future reimbursement from tax increment
revenues of the costs associated with the Plaza at University Park. Public improvements such as the Plaza
at University Park are of benefit to the adjacent Project Area and are the continuation of the public
improvement plans for the overall project of the Developer whether the public improvements are located
within the Project Area or immediately adjacent thereto.
ENVIRONMENTAL IMPACT:
The improvements identified as the Project are categorically exempt from the California Environmental
Quality Act ("CEQA") pursuant to (i) Class 1 (b) and 1 (c) of "Existing Facilities" and/or (ii) Class 4(a), (b)
and (f) of "Minor Alterations to Land" and/or (iii) Class 3( d) and (e) of "New Construction or Conversion
of Small Structures". All such improvements constituting the Project are similarly those improvements
addressed by the City of San Bernardino Planning Commission adopted Mitigated
Negative Declaration and Mitigation Monitoring/Reporting Program for Tentative Tract Map No. 16509
and Conditional Use Permit No. 03-06 on May 6, 2003, and the City of San Bernardino Planning
Commission adopted Mitigated Negative Declaration and Mitigation Monitoring/Reporting Program for
Tentative Tract Map No. 17703 and Conditional Use Permit No. 06-04 on April 4, 2006. The cited
categorical exemptions and previously adopted Mitigated Negative Declarations and Mitigation
Monitoring/Reporting Programs are adequate documentation of CEQA compliance for the undertaking of
the Project by the Participant.
FISCAL IMPACT:
$2,700,000 of CMB Export Loan funds from the 2009 EB-5 $15,000,000 loan to the Agency were
budgeted in the 2010-2011 Agency Budget for I-215/University Parkway Interchange. $999,203 of these
funds will be used for purposes of funding the reimbursements under the OPA with the Developer with the
future repayment of the CMB Export Loan being made from tax increment revenues of the Project Area.
RECOMMENDATION:
That the Mayor and Common Council and the Community Development Commission adopt the attached
Resolutions.
Emil A. Marzullo, In erim Executive Director
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Meeting Date: 04/04/2011
Agenda Item Number: /2..-2/.3
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION
33445 AS TO THE BENEFIT TO THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF
PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF-
WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY
(STATE COLLEGE REDEVELOPMENT PROJECT AREA)
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a
community redevelopment agency duly created, established and authorized to transact business and
exercise its powers, all under and pursuant to the California Community Redevelopment Law (the
"CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing
at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes
located within the approved redevelopment project areas in the City of San Bernardino (the "City")
in accordance with the CRL; and
WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the
Mayor and Common Council of the City of San Bernardino (the "Council"), pay all or a part of the
cost of installation and construction of any building, facility, structure or other improvement which
is publicly owned either within or without the boundaries of a redevelopment project area if the
Council determines: (1) that such buildings, facilities, structures or other improvements that are
publicly owned are of benefit to the redevelopment project area by helping to eliminate blight within
the redevelopment project area; (2) that no other reasonable means of financing the acquisition of
land or installation or construction of such buildings, facilities, structures or other improvements
that are publicly owned are available to the community, and such determination by the Community
Development Commission of the City of San Bernardino (the "Commission") and the Council shall
be final and conclusive; and, (3) that the payment of funds for the acquisition of land or the cost of
the buildings, facilities, structures or other improvements that are publicly owned is consistent with
the Implementation Plan adopted pursuant to Health & Safety Code Section 33490; and
1
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1 WHEREAS, the Council and the Commission have previously approved and adopted the
2 Redevelopment Plan for the State College Redevelopment Project Area (hereinafter referred to as
3 the "Redevelopment Plan") wherein the boundaries of the redevelopment project area is set forth
4 (the "Project Area"); and
5 WHEREAS, on December 20, 2010, the Commission approved an Owner Participation
6 Agreement between the Agency and University Park Promenade and Shops, LLC, a California
7 limited liability company (the "Developer") to undertake certain public works improvements subject
8 to reimbursements by the Agency being remitted to the Developer, and the undertaking of additional
9 public works improvements to be undertaken by the Developer with Agency reimbursement; and
10 WHEREAS, approximately 912 jobs will be created with the completion of the
11 infrastructure and other public improvements; and
12 WHEREAS, the Plaza at University Park shall be publicly owned and is located immediately
13 adjacent to but outside the boundaries of the Project Area and are a continuation of the public
14 improvement plan of the Developer for the project indentified in the previously referenced Owner
15 Participation Agreement; and
16 WHEREAS, the infrastructure improvements when completed, will allow the University
17 Park Promenade and Shops, LLC to complete additional development which will have a positive
18 economic impact on various City, retail, business, and commercial functions, which service the
19 residents, workers, and business owners within the State College Redevelopment Project Area.
20 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
21 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
22 FOLLOWS:
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Section 1.
The Recitals hereinabove are true and correct and are incorporated herein by
24 this reference.
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Section 2.
The Commission hereby consents to the payment by the Agency of those
26 costs required by the Owner Participation Agreement in order to ensure the economic enhancements
27 and stability of the Project Area within the City for the reasons set forth in the Recitals hereinabove.
28 The Commission also finds and determines that: (1) the buildings, facilities, structures, or other
2
P:\AgendasIResolutionslResolutions\201 1\04-04-1 I University Park Promenade and Shops 33445 CDC Reso.docx
1 improvements that are publicly owned are of benefit to the Project Area by helping to eliminate
2 blight within the Project Area; (2) no other reasonable means of financing the acquisition of land or
3 installation or construction of such buildings, facilities, structures or other improvements, are
4 available to the community; and (3) the payment of funds for the acquisition of land or the cost of
5 the buildings, facilities, structures or other improvements is consistent with the Implementation Plan
6 adopted pursuant to Health & Safety Code Section 33490.
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Section 3.
The findings and determinations herein shall be final and conclusive. This
8 Resolution shall take effect from and after its date of adoption by this Commission.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION
33445 AS TO THE BENEFIT TO THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF
PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF-
WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY
(STATE COLLEGE REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a
8 meeting thereof, held on the 4th day of April, 2011, by the following vote to wit:
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Abstain
Absent
Secretary
20 The foregoing Resolution is hereby approved this
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day of
, 2011.
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
24 Approved as to Form:
25 10(})
26 BY:Ag~~
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