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HomeMy WebLinkAboutR23-Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: University Park Promenade and Shops, LLC - Interim Executive Director Benefit Resolutions for certain public improvements adjacent to Northpark Boulevard and University Parkway pursuant to the Owner DATE: April 8,2011 Participation Agreement -------------------------------------------------------------------------------------------------------------- Synopsis 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. ------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------ Recommended Motion(s): (Mayor 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 Northpark Boulevard and University Parkway(State College Redevelopment Project Area) (Community Development 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 Northpark Boulevard and University Parkway(State College Redevelopment Project Area) Contact Person(s): Brian Turnbull Phone: (909)663-1044 State College Project Area(s): Redevelopment Project Area Ward(s): 5th Supporting Data Attached: 0 Staff Report 0 Resolution(s)❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s) previously FUNDING REQUIREMENTS: Amount: $ approved Source: EB-5/tax increment Budget Authority: 2010-2011 Budget Signature: Fiscal Review: Emil A.Marzullo, ecutive Director Lori Panz' -Till ,InVief Financial Officer - ----------- — - -- -- - — ------------------- --------- Commission/Council Notes: Sp s ,� �_ 43 ,¢,�/D ,9 z) / aZ -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-18-11 University Park Promenade and Shops 33445 SR-FirW.docx COMMISSION MEETING AGENDA Meeting Date: 04/18/2011 Agenda Item Number: :Z X/a/.i V--y,L,in ECONOMIC DEVELOPMENT AGENCY STAFF REPORT –— --------—-------------------------------------------------------–-------------------------------------------------------------------------------------------------------------------------- UNIVERSITY PARK PROMENADE AND SHOPS,LLC -BENEFIT RESOLUTIONS FOR CERTAIN PUBLIC IMPROVEMENTS ADJACENT TO NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY PURSUANT TO THE OWNER PARTICIPATION AGREEMENT BACKGROUND: In 2004, J.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 Conditional Use Permit (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 corner of Northpark 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. Two documents specifically support the findings of benefit in the Resolution. First, the University District Specific Plan, November 1, 2005, specifically addresses "Gateways." (See pg. 62 et seq.). Gateways are significant features that announce arrival into the University District. "It is within the Gateways that signature landscaping, public art, clear signage, and other distinctive features will be located." The "Implementation" section of that Plan indicates that "a series of public and private projects are required to implement the proposed Specific Plan. These projects include public street improvements, development of parkways and trails and administration of development programs." The Implementation also discusses financing strategies, including, but not limited, to this type of contribution. The corner where the Plaza will be located is important as a gateway to a major employer, economic and educational institution for the City of San Bernardino and the Inland Empire. Construction of the sidewalk continuation project from the Plaza to the retail center mitigates an unsafe public condition wherein students are now walking in the street creating a pedestrian hazard. The Plaza's development would eradicate an underdeveloped parcel creating an attractive point of entry for ------------------ --------------------------------------------------------------------------------------------------------------------------------- ---------------------- P:\Agendas\CommDevCommission\CDC2011\04-18-11 University Park Promenade and Shops 33445 SR_Flnal.docx COMMISSION MEETINGAGENDA Meeting Date: 04/18/2011 Economic Development Agency Staff Report Infrastructure Improvements to Northpark Boulevard and University Parkway Page 2 all visitors. The Plaza will be a distinctive gateway in the University District at a predominate entry to California State University, San Bernardino (CSUSB). In addition, construction of the Plaza meets the goals of the Five-Year Implementation Plan for the Agency (2009-2010 through 2013-2014). University Parkway public infrastructure and facilities programs are identified as part of the Regional Programs and Work Programs (see, for example, pg. 30). In addition, the project will provide a tangible example of the City of San Bernardino's commitment to bring high quality development projects to the community. The Plaza will provide synergy for future development within the City On December 20, 2010, the Community Development Commission of the City of San Bernardino ("Commission") approved an Owner Participation Agreement ("OPA") 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. 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 Community Development Commission of the City of San Bernardino ("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. The EDA has not identified another available source of funding for this project. 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 --------------------------------------------------------------------- -------------------------------------------------------------------—-------------------------------------------------- P:Wgendas\Comm Dev Commission\CDC 2011\04-18-11 University Park Promenade and Shops 33445 SR-Final.docx COMMISSION MEETING AGENDA Meeting Date: 04/18/2011 Economic Development Agency Staff Report Infrastructure Improvements to Northpark Boulevard and University Parkway Page 3 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. Staff will file a Notice of Exemption. 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 Freeway/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, Interim Executive Director --------------------------------------------------------------------------- -------------------- ------ - P:\Agendas\CommDevCommission\CDC 2011\04-18-11 University Park Promenade and Shops 33445 SR-Final.docx COMMISSION MEETING AGENDA Meeting Date: 04/18/2011 r State College ".�.,.� p ` d LGQLSf3:iiG4H T 4 y it n E! a IIIIII �/•' �.°',s� �s Y *cs"1 /��' ..d+",.+ � a� .r+lrm�.�� i {{�'R . 1 Owe "+'°' 'M+«M' is � Fe r "9 +m �C r.�"F . m. y �o, p e,• �+ ,j L 1 Q1 rd 4 ,•.�� ` r e«"' j a q Ali k� t�,S,I.en.� y« :� �S°( �� � a MTI i Ward 5 10 00e ^41#CP# :f MAN ward ,AN r // r e t Legend - t EI �` C' cam, ruriu giro ..in.� Project Area Boundary -- ..,�. ±fir I Parcels iv __.. •'g Wards 12110 C'.3- ier F v Subject Property Plaza ...... ! W r.«+ +'�' „aee +or. j '° �T £ ,yam •7!7'H Of AVe LU •. e � � �� � ITfa ltd. �.� � ,. � nr y°.�� , I �,�; � •alp � � ,.,n � .ee � -. ut. g ry 1 T .,„ City of San Bernardino Redevelopment Project Area -State CoHe e » u I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO CERTAIN PAYMENTS BY THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MAKING CERTAIN FINDINGS AND DETERMINATIONS PURSUANT TO 4 HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO 5 THE STATE COLLEGE REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE 6 PUBLIC RIGHTS-OF-WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY (STATE COLLEGE REDEVELOPMENT 7 PROJECT AREA) 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 9 10 community redevelopment agency duly created, established and authorized to transact business and 11 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 12 "CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 13 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 14 located within the approved redevelopment project areas in the City of San Bernardino (the "City") in accordance with the CRL; and 15 16 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 17 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 18 19 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 20 21 publicly owned are of benefit to the redevelopment project area by helping to eliminate blight within 22 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 are 23 available to the community, and such determination by the Community Development Commission 24 25 of the City of San Bernardino (the "Commission") and the Council shall be final and conclusive; (3) 26 that the payment of funds for the acquisition of land or the cost of the buildings, facilities, structures 27 or other improvements that are publicly owned is consistent with the Implementation Plan adopted 28 pursuant to Health & Safety Code Section 33490; and (4) as more fully described in the Agency I Staff Report, the improvements to the Plaza at University Park are of overwhelming benefit to the 2 Project Area; and 3 WHEREAS, the Council and the Commission have previously approved and adopted the 4 Redevelopment Plan for the State College Redevelopment Project Area (hereinafter referred to as 5 the "Redevelopment Plan") wherein the boundaries of the redevelopment project area is set forth 6 (the "Project Area"); and 7 WHEREAS, on December 20, 2010, the Commission approved an Owner Participation 8 Agreement between the Agency and University Park Promenade and Shops, LLC, a California 9 limited liability company (the "Developer") to undertake certain public works improvements subject 10 to reimbursements by the Agency being remitted to the Developer, and the undertaking of additional 11 public works improvements to be undertaken by the Developer with Agency reimbursements; and 12 WHEREAS, approximately 912 jobs will be created with the completion of the 13 infrastructure and other public improvements; and 14 WHEREAS, the Plaza at University Park shall be publicly owned and is located immediately 15 adjacent to but outside the boundaries of the Project Area and are a continuation of the public 16 improvement plan of the Developer for the project indentified in the previously referenced Owner 17 Participation Agreement; and 18 WHEREAS, the infrastructure and other public improvements when completed, will allow 19 the University Park Promenade and Shops, LLC, to complete additional development which will 20 have a positive economic impact on various City, retail, business, and commercial functions, which 21 service the residents, workers, and business owners within the State College Redevelopment Project 22 Area. 23 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 24 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 25 FOLLOWS: 26 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 27 this reference. 28 2 I Section 2. The Council hereby consents to the payment by the Agency of those costs 2 required by the Owner Participation Agreement in order to ensure the economic enhancements and 3 stability of the Project Area within the City for the reasons set forth in the Recitals hereinabove. 4 The Council also finds and determines that: (1) the buildings, facilities, structures or other 5 improvements are of benefit to the Project Area by helping to eliminate blight within the Project 6 Area; (2) the Agency has fully investigated alternative sources of funding; (3) no other reasonable 7 means of financing the acquisition of land or installation or construction of such buildings, facilities, 8 structures or other improvements are available to the community; (4) the payment of funds for the 9 acquisition of land or the cost of the buildings, facilities, structures or other improvements is 10 consistent with the Implementation Plan adopted pursuant to Health & Safety Code Section 33490; 11 and (5) as more fully described in the Agency Staff Report, the improvements to the Plaza at 12 University Park are of overwhelming benefit to the Project Area. 13 Section 3. The Interim Executive Director is directed to have a Notice of Exemption 14 (NOE) filed and posted within five (5) days. 15 Section 4. The findings and determinations herein shall be final and conclusive. This 16 Resolution shall take effect upon its adoption and execution in the manner as required by the City 17 Charter. 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 3 P:\Agendas\Resolutions\Resolutions\2011\04-18.11 University Park promenade and Shops 33445 MCC Reso.docx 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO CERTAIN PAYMENTS BY THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MAKING CERTAIN FINDINGS AND DETERMINATIONS PURSUANT TO 3 HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE REDEVELOPMENT PROJECT AREA FOR THE 4 INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE 5 PUBLIC RIGHTS-OF-WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY (STATE COLLEGE REDEVELOPMENT 6 PROJECT AREA) 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, 9 held on the 18th day of April, 2011, by the following vote to wit: 10 11 Council Members: Ayes Nays Abstain Absent 12 MARQUEZ 13 VACANT 14 BRINKER 15 SHORETT KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 Rachel G. Clark, City Clerk 20 21 The foregoing Resolution is hereby approved this day of , 2011. 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino Approved as to Form: 25 26 27 flames F. Penman, City Attorney 28 4 D 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 3 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 4 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF 5 PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 6 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 9 community redevelopment agency duly created, established and authorized to transact business and 10 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 11 "CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 12 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 13 located within the approved redevelopment project areas in the City of San Bernardino (the "City") 14 in accordance with the CRL; and 15 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 16 Mayor and Common Council of the City of San Bernardino (the "Council"), pay all or a part of the 17 cost of installation and construction of any building, facility, structure or other improvement which 18 is publicly owned either within or without the boundaries of a redevelopment project area if the 19 Council determines: (1) that such buildings, facilities, structures or other improvements that are 20 publicly owned are of benefit to the redevelopment project area by helping to eliminate blight within 21 the redevelopment project area; (2) that no other reasonable means of financing the acquisition of 22 land or installation or construction of such buildings, facilities, structures or other improvements 23 that are publicly owned are available to the community, and such determination by the Community 24 Development Commission of the City of San Bernardino (the "Commission") and the Council shall 25 be final and conclusive; (3) that the payment of funds for the acquisition of land or the cost of the 26 buildings, facilities, structures or other improvements that are publicly owned is consistent with the 27 Implementation Plan adopted pursuant to Health & Safety Code Section 33490; and (4) as more 28 1 i 1 3 s 1 fully described in the Agency Staff Report, the improvements to the Plaza at University Park are of 2 overwhelming benefit to the Project Area; and 3 WHEREAS, the Council and the Commission have previously approved and adopted the 4 Redevelopment Plan for the State College Redevelopment Project Area (hereinafter referred to as 5 the "Redevelopment Plan") wherein the boundaries of the redevelopment project area is set forth 6 (the "Project Area"); and 7 WHEREAS, on December 20, 2010, the Commission approved an Owner Participation 8 Agreement between the Agency and University Park Promenade and Shops, LLC, a California { 9 limited liability company (the "Developer") to undertake certain public works improvements subject 1 10 to reimbursements by the Agency being remitted to the Developer, and the undertaking of additional 11 public works improvements to be undertaken by the Developer with Agency reimbursement; and 12 WHEREAS, approximately 912 jobs will be created with the completion of the i 13 infrastructure and other public improvements; and 14 WHEREAS, the Plaza at University Park shall be publicly owned and is located immediately 15 adjacent to but outside the boundaries of the Project Area and are a continuation of the public 16 improvement plan of the Developer for the project indentified in the previously referenced Owner 1 17 Participation Agreement; and 18 WHEREAS, the infrastructure improvements when completed, will allow the University 19 Park Promenade and Shops, LLC to complete additional development which will have a positive economic impact on various City, business and commercial functions, which service the 20 eco p ty, , 21 residents, workers, and business owners within the State College Redevelopment Project Area. j 22 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 23 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS a 24 FOLLOWS: a 25 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 26 this reference. 27 Section 2. The Commission hereby consents to the payment by the Agency of those 28 costs required by the Owner Participation Agreement in order to ensure the economic enhancements 2 I and stability of the Project Area within the City for the reasons set forth in the Recitals hereinabove. 2 The Commission also finds and determines that: (1) the buildings, facilities, structures, or other 3 improvements that are publicly owned are of benefit to the Project Area by helping to eliminate 4 blight within the Project Area; (2) the Agency has fully investigated alternative sources of funding; 5 (3) no other reasonable means of financing the acquisition of land or installation or construction of 6 such buildings, facilities, structures or other improvements are available to the community; (4) the 7 payment of funds for the acquisition of land or the cost of the buildings, facilities, structures or other 8 improvements is consistent with the Implementation Plan adopted pursuant to Health& Safety Code 9 Section 33490; and (5) as more fully described in the Agency Staff Report, the improvements to the 10 Plaza at University Park are of overwhelming benefit to the Project Area. 11 Section 3. The Interim Executive Director is directed to have a Notice of Exemption 12 (NOE) filed and posted within five (5) days. 13 Section 4. The findings and determinations herein shall be final and conclusive. This 14 Resolution shall take effect from and after its date of adoption by this Commission. % 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 3 P:\Agendas\Resolutions\Resolutions\2011\04-18-11 University Park Promenade and Shops 33445 CDC Reso.docx RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 1 THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 2 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 3 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- 4 WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 5 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 6 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 18th day of April, 2011, by the following vote to wit: 9 10 Commission Members: Ayes Nays Abstain Absent 11 MARQUEZ VACANT 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of , 2011. 21 ' 22 Patrick J. Morris, Chairperson 23 Community Development Commission of the City of San Bernardino 24 Approved as to Form: 25 By: v 26 Agency Counsel 27 28 4 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 3 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 4 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF 5 PUBLIC IMPROVEMENTS ADJACENT TO THE PUB C RIGHTS-OF- WAY OF NORTHPARK BOULEVARD AND UNIV SITY PARKWAY 6 (STATE COLLEGE REDEVELOPMENT PROJECT A A) 7 8 WHEREAS, the Redevelopment Agency of the Cit of San Bernardino (the "Agency") is a 9 community redevelopment agency duly created, establi ed and authorized to transact business and 10 exercise its powers, all under and pursuant to the C lifornia Community Redevelopment Law (the 11 "CRL"), codified under Division 24, Part 1 of t California Health and Safety Code commencing 12 at Section 33000 and is authorized to impleme t infrastructure projects for redevelopment purposes 13 located within the approved redevelopment roject areas in the City of San Bernardino (the "City") 14 in accordance with the CRL; and 15 WHEREAS, pursuant to Sectio 33445 of the Act, the Agency may, with the consent of the 16 Mayor and Common Council of the ity of San Bernardino (the "Council"), pay all or a part of the 17 cost of installation and constructio of any building, facility, structure or other improvement which 18 is publicly owned either within without the boundaries of a redevelopment project area if the 19 Council determines: (1) that su h buildings, facilities, structures or other improvements that are 20 publicly owned are of benefit t the redevelopment project area by b -_,late blight within 21 the redevelopment project ar a; (2) that no other reasonable meal Do;?/1911VAL I of 22 land or installation or const ction of such buildings, facilities, cents 23 that are publicly owned are available to the community, and su( (^' iunity 24 Development Commission of the City of San Bernardino (the ' ;il shall 25 be final and conclusive; (3) that the payment of funds for the st of the 26 buildings, facilities, structures or other improvements that are publicly owneu . t with the 27 Implementation Plan adopted pursuant to Health & Safety Code Section 33490; and (4) as more 28 1 I fully described in the Agency Staff Report, the improvements to the Plaza at University Park are of 2 overwhelming benefit to the Project Area; and 3 WHEREAS, the Council and the Commission have previously approved and adopted the 4 Redevelopment Plan for the State College Redevelopment Project Area (hereinafter referred to as 5 the "Redevelopment Plan") wherein the boundaries of the redevelopment project area is set forth 6 (the "Project Area"); and 7 WHEREAS, on December 20, 2010, the Commission approved an Owner Participation 8 Agreement between the Agency and University Park Promenade and Shops, LLC, a California 9 limited liability company (the "Developer") to undertake certain public works improvements subject 10 to reimbursements by the Agency being remitted to the Developer, and the undertaking of additional 11 public works improvements to be undertaken by the Developer with Age y reimbursement; and 12 WHEREAS, approximately 912 jobs will be create with the completion of the 13 infrastructure and other public improvements; and 14 WHEREAS, the Plaza at University Park shall b publicly owned and is located immediately 15 adjacent to but outside the boundaries of the Proj ct Area and are a continuation of the public 16 improvement plan of the Developer for the proj t indentified in the previously referenced Owner 17 Participation Agreement; and 18 WHEREAS, the infrastructure imp vements when completed, will allow the University 19 Park Promenade and Shops, LLC to co lete additional development which will have a positive 20 economic impact on various City, ret 1, business, and commercial functions, which service the 21 residents, workers, and business owne s within the State College Redevelopment Project Area. 22 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 23 CITY OF SAN BERNARDINO OES HEREBY RESOLVE, DETERMINE AND ORDER, AS 24 FOLLOWS: 25 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 26 this reference. 27 Section 2. The Commission hereby consents to the payment by the Agency of those 28 costs required by the Owner Participation Agreement in order to ensure the economic enhancements 2 I and stability of the Project Area within the City for the reasons set forth in the Recitals hereinabove. 2 The Commission also finds and determines that: (1) the buildings, facilities, structures, or other 3 improvements that are publicly owned are of benefit to the Project Area by helping to eliminate 4 blight within the Project Area; (2) the Agency has fully investigated alternative sources of finding; 5 (3) no other reasonable means of financing the acquisition of land or installation or construction of 6 such buildings, facilities, structures or other improvements are availabl to the community; (4) the 7 payment of funds for the acquisition of land or the cost of the b ' ings, facilities, structures or other 8 improvements is consistent with the Implementation Pla dopted pursuant to Health & Safety Code 9 Section 33490; and (5) as more fully described in t Agency Staff Report, the improvements to the 10 Plaza at University Park are of overwhelming nefit to the Project Area. 11 Section 3. The Interim Execu ' e Director is directed to have a Notice of Exemption 12 (NOE) filed and posted within five (5) ays. 13 Section 4. The findings and determinations herein shall be final and conclusive. This 14 Resolution shall take effect from nd after its date of adoption by this Commission. 15 16 17 18 // 19 // 20 // 21 22 23 24 // 25 // 26 // 27 // 28 // 3 I H 2 H 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 4 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 5 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- 6 WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 7 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at a 10 meeting thereof, held on the 4th day of April, 2011, by the following vote to wit: 11 �� i 12 Commission Members: Ayes Nays Abstain Q Absent 13 MARQUEZ VACANT 14 BRINKER 15 SHORETT 16 KELLEY 17 JOHNSON 18 MC CAMMACK 19 20 Secretary 21 22 The foregoing Resolution is ereby approved this day of 2011. 23 24 Patrick J. Morris, Chairperson 25 Community Development Commission of the City of San Bernardino 26 Approved as to Form: 27 2 By: 8 Agency oun 1 4 s CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: University Park Promenade and Shops, LLC - Interim Executive Director Benefit Resolutions for certain public improvements adjacent to North Park Boulevard and University Parkway pursuant to the Owner DATE: March 23, 2011 Participation Agreement ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Synopsis 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. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Mayor 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) (Community Development Commission) B: Resolution of the Community Development Commission of the City of San Bernardino making certain findings and 1 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 State College Project Area(s): Redevelopment Project Area Ward(s): 5 Supporting Data Attached: 0 Staff Report R1 Resolution(s) ❑Agreement(s)/Contract(s) ❑Map(s)❑Letter(s) previously FUNDING REQUIREMENTS: Amount: $ approved Source: EB-5/tax increment Budget Authority: 2010-2011 Budget Signature: Fiscal Review: Emil A.Marzullo,In ecutive Director Lori Panz` o-Till te' ief Financial Officer -T ----------------------------------------------------------------------- Commission/Council Notes: �� - 1 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-04-11 University Park Promenade and Shops 33445 SR.docx COMMISSION MEETINGAGENDA Meeting Date: ���/�� Agenda Item Number: r3 i I ECONOMIC DEVELOPMENT AGENCY STAFF REPORT 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 BACKGROUND: In 2004, J.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 corner of Northpark 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 ("OPA") 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 I year. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-04-11 University Park Promenade and Shops 33445 SR.docx COMMISSION MEETINGAGENDA Meeting Date: 04/04/2011 Agenda Item Number: 23 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. �h Emil A. Marzullo,In Brim Executive Director ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- PAAgendas\Comm Dev Commission\CDC 2011\04-04-11 University Park Promenade and Shops 33445 SR.doex COMMISSION MEETINGAGENDA Meeting Date: 04/04/2/011 Agenda Item Number: 73 v +. #,.i•, r� fir•... y re __ y � •r 11.�1# ��Y 1 '.^ �►-#���� ,r, r'i+.,f t r 1r r�1;11W r q i } r.• :Q 4 xf �f a. 1 as u q �.:ray , "yr ��-�t�1fi t r ��Yr•r � .+, '� y�,� }+Cttr a: � 1" r�`�^" r r � �. p*amw t� w '''�S.'''A..u,tutlrn�'�'.w6 ,yam.; .� T �r`r" .:ii� :.t Y 1y`.i�3� � f� �t d�' �xrtf w �5�� a•� a�r ~��.(� Ilt-. re11 �.) • / / � ''������� ��tia"' •�I w rs �i+Jil�f'f r�!9, +'r, fg'�r��` � xa q�*a �+ s ,i ifirP4riu . �M�i'Id' Of, y !r ` .t. ¢ W';R.rfX `� i iG�ew,.S: n•,.7'� 7 1 r.( 1 1� �11� i 111,MIIY >Mt _ I � `�" � / '�' � S a'`Y, •� � 1 rltlll .fir� k� -: lUaun tall■lily &(ki-IlliTa�+''��I• Jiillli��`1 � law Legend CMProjectArea Boundary Parcels ism - H���Wards � y � 11h� ■�.,!, all�i° � �� ��; •utnnrl�Itlltlltrrn5r,1agtli � ! �Ir,e,r � Subject Property Plaza 11• (nrquaruuat111llti)olgli � ■C111} uall( ilitan Illttf,lrort .rf 111i11 ,nnnnrnuutt'�u11YNl► tiu�ih i • "" i✓Itt- � lliit } i t ti 7 i ✓"^'' $ �UlltlllillilllA a lmwt tlgt 1 • n �� 1� m _ ..a..utrt,�t,�; . fit1l ` G triittr t �%•: .,tort i � ®d - uuu4�ii't y 1 t .r •r � f t,, .F ,� a poll M*c an• t1 / t.L � �/Jl��� � � :•rtttilli qi ���::-np�1 �. atr ail r,.. _. ...: .._.........:. .........j' ', • .' a •. . - ' -. . -. X67 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 3 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 4 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF 5 PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 6 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 8 community redevelopment agency duly created, established and authorized to transact business and 9 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 10 "CRL"), codified under Division 24, Part I of the California Health and Safety Code commencing 11 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 12 located within the approved redevelopment project areas in the City of San Bernardino (the "City") 13 in accordance with the CRL; and 14 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 15 Mayor and Common Council of the City of San Bernardino (the "Council"), pay all or a part of the 16 cost of installation and construction of any building, facility, structure or other improvement which 17 is publicly owned either within or without the boundaries of a redevelopment project area if the 18 Council determines: (1) that such buildings, facilities, structures or other improvements that are 19 publicly owned are of benefit to the redevelopment project area by helping to eliminate blight within 20 the redevelopment project area; (2) that no other reasonable means of financing the acquisition of 21 land or installation or construction of such buildings, facilities, structures or other improvements 22 that are publicly owned are available to the community, and such determination by the Community 23 Development Commission of the City of San Bernardino (the "Commission") and the Council shall 24 be final and conclusive; and, (3) that the payment of funds for the acquisition of land or the cost of 25 the buildings, facilities, structures or other improvements that are publicly owned is consistent with 26 the Implementation Plan adopted pursuant to Health& Safety Code Section 33490; and 27 28 1 P:Wgendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx i . 6 `s a I 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 1 21 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 22 FOLLOWS: 23 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 24 this reference. 25 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:\Agendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx I 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. 7 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. 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 9 a 21 // 22 // 23 3 24 // 25 // 26 // 27 // 28 // P:\Agendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx 0 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 1 THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 2 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 3 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- 4 WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 5 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 6 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: 9 10 Commission Members: Ayes Nays Abstain Absent 11 MARQUEZ VACANT 12 BRINKER 13 14 SHORETT KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of , 2011. 21 22 Patrick J. Morris, Chairperson 23 Community Development Commission of the City of San Bernardino 24 Approved as to Form: 25 26 By. Agency Co se 27 28 4 P:Wgendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: University Park Promenade and Shops, LLC - Interim Executive Director Benefit Resolutions for certain public improvements adjacent to North Park Boulevard and University Parkway pursuant to the Owner DATE: March 23, 2011 Participation Agreement ----------------------------------------------------------------------------—---------------------------------------------------------——------------------------—----------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On December 20, 2010, the Community Development Commission of the City of San Bernardin approved a Property Owner Participation Agreement between the Agency and University Park Promenade and Shops,LLC. i ------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------- Recommended Motion(s): (Mayor and Common ouncil A: Resolution of the Mayor and Common Council of the City of n Bernardino consenting to certain payments by the Redevelopment Agency of the City of San Bernardino and m ' g certain findings and determinations pursuant to Health & Safety Code Section 33445 as to the benefit to the State ollege Redevelopment Project Area for the installation of public improvements adjacent to the Public Rights-of-W y of North Park Boulevard and University Parkway (State College Redevelopment Project Area) Communi Develo ment Commission B: Resolution of the Community Development Co mission of the City of San Bernardino making certain findings and determinations pursuant to Health & Safety C e Section 33445 as to the benefit to the State College Redevelopment Project Area for the installation of public im ovements adjacent to the Public Rights-of-Way of North Park Boulevard and University Parkway(State College Red elopment Project Area) Contact Person(s): Brian T bull Phone: (909)663-1044 Stat College Project Area(s): Redevelo ent Project Area Ward(s): 5 Supporting Data Attached: 0 ff Report 2 Resolution(s) ❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s) previously FUNDING REQUIREMENTS: Amount: $ approved Source: EB-5/tax increment Budget Authority: 2010-2011 Budget Signature: Fiscal Review: Emil A.Mar llo,In cutive Director Lori Panz o-Till to ' ief Financial Officer --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: --------------------------------------------------------------------------------------- ---------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-04-11 University Park Promenade and Shops 33445 SM.. COMMISSION MEETINGAGENDA Meeting Date: 04//04/2011 Agenda Item Number: P;_7 3 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------—------------------------- 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 BACKGROUND: In 2004, J.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, I 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 corner of Northpark 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 ("OPA") 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 I year. ---------------------—-------—_____------------------------------------------------------—-----------------—------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-0411 University Park Promenade and Shops 33445 SRA. COMMISSION MEETINGAGENDA Meeting Date: 04/04/2011 Agenda Item Number: 23 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 Brim Executive Director ------------------------__------------------------------------------------—------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\04-04-11 University Park Promenade and Shops 33445 SR.docx COMMISSION MEETINGAGENDA Meeting Date: 04/04/2/011 Agenda Item Number: �3 4„ �a y iF eNR,FMeN Col/ege n � Y e n SOV ice. ��c M�6 �^ '.-./� ii ~•:`• % �� a `To JJ 'a rcl S 0 or""x sZ'a. ,>'A<z d •, crxoet �, ol��.��♦♦.y�p�a. tl'.x �r.�ta >•°�.x � •r` �", � c"� F oz .g u M �♦'`; et vo l� xRs *Ile ,..+. • .ve• •ES rarxime S '� v 't. ! ! v 7. y•:•1,�.a `•+ 5O�^ r`s Y,�+ � •crO+Poµ`���"r 0� s�'� we•r..rao - �. k ��I. i !-. '� � , 0., ,s„wooeer s _ • s moo _ -u pi 4 � RrtHCF1 AFAIVIEFt 6 ii rd 6 S e ` ur H.:r;, ._, i Legend Project Area Boundary Parcels Wards \N, �• �� I,-A , 10 .� Subject Property Plaza �� �„ • �4 ......................i ? vE• ` � C .. ;y i � ��-_ W i � III`• .r. s B tI ifrd .w _ � ri. w.t .�.N4Np A�L. 59 City of San Bernardino , Redevelopment Project Area -State Cofle e ' 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO CERTAIN PAYMENTS BY THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MAKING CERTAIN FINDINGS AND DETERMINATIONS PURSUANT TO 4 HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO 5 THE STATE COLLEGE REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE 6 PUBLIC RIGHTS-OF-WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY (STATE COLLEGE REDEVELOPMENT 7 PROJECT AREA) 8 9 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 10 community redevelopment agency duly created, established and authorized to transact business and 11 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 12 "CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 13 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 14 located within the approved redevelopment project areas in the City of San Bernardino (the "City") 15 in accordance with the CRL; and 16 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 17 Mayor and Common Council of the City of San Bernardino (the "Council"), pay all or a part of the 18 cost of installation and construction of any building, facility, structure or other improvement which 19 is publicly owned either within or without the boundaries of a redevelopment project area if the 20 Council determines: (1) that such buildings, facilities, structures or other improvements that are 21 publicly owned are of benefit to the redevelopment project area by helping to eliminate blight within 22 the redevelopment project area; (2) that no other reasonable means of financing the acquisition of 23 land or installation or construction of such buildings, facilities, structures or other improvements are 24 available to the community, and such determination by the Community Development Commission 25 of the City of San Bernardino (the "Commission") and the Council shall be final and conclusive; 26 and, (3) that the payment of funds for the acquisition of land or the cost of the buildings, facilities, 27 structures or other improvements that are publicly owned is consistent with the Implementation Plan 28 adopted pursuant to Health& Safety Code Section 33490; and 1 P:\Agendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 MCC Reso.docx I 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 reimbursements; 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 and other public improvements when completed, will allow 17 the University Park Promenade and Shops, LLC, to complete additional development which will 18 have a positive economic impact on various City, retail, business, and commercial functions, which 19 service the residents, workers, and business owners within the State College Redevelopment Project 20 Area. 21 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 22 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 23 FOLLOWS: 24 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 25 this reference. 26 Section 2. The Council hereby consents to the payment by the Agency of those costs 27 required by the Owner Participation Agreement in order to ensure the economic enhancements and 28 stability of the Project Area within the City for the reasons set forth in the Recitals hereinabove. 2 P:\Agendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 MCC Reso.doex 1 The Council also finds and determines that: (1) the buildings, facilities, structures or other 2 improvements are of benefit to the Project Area by helping to eliminate blight within the Project 3 Area; (2) no other reasonable means of financing the acquisition of land or installation or 4 construction of such buildings, facilities, structures or other improvements are available to the 5 community; and (3) the payment of funds for the acquisition of land or the cost of the buildings, 6 facilities, structures or other improvements is consistent with the Implementation Plan adopted 7 pursuant to Health & Safety Code Section 33490. 8 Section 3. The findings and determinations herein shall be final and conclusive. This 9 Resolution shall take effect upon its adoption and execution in the manner as required by the City 10 Charter. 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 3 P:W gendas\Resolutions\Resolutions\2011\04-04-I 1 University Park Promenade and Shops 33445 MCC Reso.docx 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO CERTAIN PAYMENTS BY THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MAKING CERTAIN FINDINGS AND DETERMINATIONS PURSUANT TO 3 HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE REDEVELOPMENT PROJECT AREA FOR THE 4 INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE 5 PUBLIC RIGHTS-OF-WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY (STATE COLLEGE REDEVELOPMENT 6 PROJECT AREA) 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, 9 held on the 4th day of April, 2011, by the following vote to wit: 10 11 Council Members: Ayes Nays Abstain Absent 12 MARQUEZ 13 VACANT 14 BRINKER SHORETT 15 KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 Rachel G. Clark, City Clerk 20 21 The foregoing Resolution is hereby approved this day of , 2011. 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino Approved as to Form: 25 26 By: 27 James F. Penman, City Attorney 28 4 P:Wgendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 MCC Reso.docx i 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 3 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 4 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF 5 PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 6 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 8 community redevelopment agency duly created, established and authorized to transact business and 9 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 10 "CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 11 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 12 located within the approved redevelopment project areas in the City of San Bernardino (the "City") 13 in accordance with the CRL; and 14 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, w' h the consent of the 15 Mayor and Common Council of the City of San Bernardino (the "Counc' , pay all or a part of the 16 cost of installation and construction of any building, facility, structu or other improvement which 17 is publicly owned either within or without the boundaries of redevelopment project area if the 18 Council determines: (1) that such buildings, facilities, st tures or other improvements that are 19 publicly owned are of benefit to the redevelopment proj t area by helping to eliminate blight within 20 the redevelopment project area; (2) that no other re sonable means of financing the acquisition of 21 land or installation or construction of such bui ings, facilities, structures or other improvements 22 that are publicly owned are available to the c mmunity, and such determination by the Community 23 Development Commission of the City of S Bernardino (the "Commission") and the Council shall 24 be final and conclusive; and, (3) that th payment of funds for the acquisition of land or the cost of 25 the buildings, facilities, structures or other improvements that are publicly owned is consistent with 26 the Implementation Plan adopted pursuant to Health& Safety Code Section 33490; and 27 28 1 P:Wgendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx I 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: 23 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 24 this reference. 25 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:\Agendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx I 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. 7 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. 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 3 P:Wgendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.dom 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND 2 DETERMINATIONS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 AS TO THE BENEFIT TO THE STATE COLLEGE 3 REDEVELOPMENT PROJECT AREA FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ADJACENT TO THE PUBLIC RIGHTS-OF- 4 WAY OF NORTHPARK BOULEVARD AND UNIVERSITY PARKWAY 5 (STATE COLLEGE REDEVELOPMENT PROJECT AREA) 6 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: 9 10 Commission Members: Ayes Nays Abstain Absent 11 MARQUEZ 12 VACANT 13 BRINKER SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of , 2011. 21 22 Patrick J. Morris, Chairperson 23 Community Development Commission of the City of San Bernardino 24 Approved as to Form: 25 By. 26 Agency Co se 27 28 4 P:\P.gendas\Resolutions\Resolutions\2011\04-04-11 University Park Promenade and Shops 33445 CDC Reso.docx