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Home My WebLink AboutR28-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Salvation Army - Regarding the acceptance and conveyance of properties DATE: July 22,2011 ----------------------------------------------------------------------------------~------------ Svnonsis of Previous Commission/Council/Committee Action(s): On February 10, 20 II, Redevelopment Committee Members Joboson, Marquez and Brinker discussed in Closed Session and unanimously voted to recommend that the Mayor and Common Council of the City of San Bernardino ("Council") and the Community Development Commission of the City of San Bernardino ("Commission") consider this action for approval. On February 22, 2011, at the Joint Regular meeting of the Council and the Commission in Closed Session, the Commission approved the Redevelopment Committee's recommendation. On March 17,2011, at the Joint Special meeting of the Council and the Commission, the Commission approved the transfer of related real property assets to the SBEDC pursuant to Section 2.01(C) ofthe Project Funding Agreement (CDC/2011-9). On May 2, 2011, at the Joint Regular meeting of the Council and the Commission Closed Session, the Commission approved the purchase and terms of the Salvation Army properties on 5th and Spruce Streets. Recommended Motion(s): (Communitv Develonment Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the transfer of the Salvation Army properties from the Redevelopment Agency of the City of San Bernardino ("Agency") to the San Bernardino Economic Development Corporation ("SBEDC") pursuant to the approval of the transfer of all real property assets of the Agency to the SBEDC on March 17,2011 in accordance with the Project Funding Agreement (CDC/2011-9) Contact Person(s): Lou Schnepp Phone: (909) 663-1044 Project Area(s): Central City North Ward(s): Supporting Data Attached: o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) FUNDING REQUIREMENTS: unt: $ .~ N/A Source: N/A Signature: Emil A. Marzullo, Interim Executive Director Budget Authority: Fiscal Review: Lori Panzino- Commission/Council Notes: P:\Agendas\Comm Dev Commission\COC 20 II \08-0 1-11 Salvation Anny SR.doc COMMISSION MEETING AGENDA Meeting Date: 08/0112011 Agenda Item Number: J2-2-9;' ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ______________________________________________________d_____________________________________________________--- SALVATION ARMY REGARDING THE ACCEPTANCE AND CONVEYANCE OF PROPERTIES BACKGROUND: On November 7, 2005, the Community Development Commission of the City of San Bernardino ("Commission") approved the Central City North Downtown Mixed Use Project concept plan, authorizing the acquisition of parcels along 5th Street and 4th Street between "G" and "H" Streets. In March of 2006, $36 million in Low/Mod 20% Set-Aside Bonds were issued to fund these acquisitions. After an unsuccessful attempt to negotiate and acquire the parcels and buildings belonging to the Salvation Army, the Redevelopment Agency of the City of San Bernardino ("Agency") entered into an eminent domain proceeding. At that time, the estimated cost of acquisition and relocation was believed to be approximately $6.5 - $7.5 million. In September 2008, the Agency cancelled the acquisition efforts. In 20 I 0, the Salvation Army indicated an interest in disposing of their properties on 5th and Spruce Streets in order to facilitate a relocation and construction at another location. The 2010 updated appraisal valued the 5th Street building at $940,000. The Spruce Street parcels were valued as follows: APN 0134-053-29 at $328,000 and vacant parcels APNs 0134-053-20, 21, 22, 23, 25 and 26 at $237,000. In October of 2010, the Agency offered the Salvation Army $2,673,000 (including relocation) for these parcels. The Salvation Army is also planning to move Program Administration, Spiritual and Family Programs to another location and Homeless Housing and Food Services to 925 West loth Street requiring capital improvements in an amount of approximately $1,000,000, and the Administration and Spiritual buildings are estimated to cost a minimum of $1 ,500,000. At the February 10,2011 Redevelopment Committee meeting, the sub-committee authorized the Agency to make an offer within a negotiating range of $3.5 and $4.5 million. On February 11,2011, the offer was made to the Salvation Army and on February 15,2011, the Salvation Army responded with the following offers: 746 West 5th Street, APN: 0134-054-07,08 and 09 $940,000 Spruce Street vacant parcels APNs: 0134-053-20, 21, 22, 23, 25 and 26. $237,000 Note: The building on Soruce Street APN: 0134-053-29, removed from sale. 925 West 10tn Street, Grant for Caoital Imorovements $1,000,000 SanctuarY and Administration building, costs for construction and re-establishment $1,500,000 . Total: $3,677,000 On February 22, 2011 during Closed Session of the Commission, the Agency was authorized to finalize the purchase of the Salvation Army properties. On May 2, 2011 at Closed Session ofthe Joint Regular meeting of the Mayor and Common Council of the City of San Bernardino ("Council") and the Commission, and the San Bernardino City Housing Authority, the Commission approved the purchase and terms of the Salvation Army properties on 5th and Spruce Streets. P:\Agendas\Comm Dev Commission\CDC 2011\08-01-11 Salvation Anny SR.doc COMMISSION MEETING AGENDA Meeting Date: 08/011201 I Agenda Item Number: /i.~ Economic Development Agency Staff Report Salvation Army Page 2 On June 2, 2011, escrow to purchase the Salvation Army properties was opened, which closed on June 28, 2011 with deed recorded conveying the properties to the Agency. The Salvation Army will remain in the building for 18 months under a lease arrangement. On March 17,2011 at the Joint Special meeting of the Council and the Commission the transfer of all real property assets of the Agency to the San Bernardino Economic Development Corporation ("SBEDC") was approved and the transfers were recorded on March 18, 20 II and March 21, 2011. CURRENT ISSUE: As aforementioned the negotiations to acquire the Salvation Army properties on 5th and Spruce Streets began in 2010 with the Agency, and the Agreement for purchase was concluded with the Agency and approved by the Commission, the governing body of the Agency, on February 22, 2011 before the Commission approved the transfer of assets to the SBEDC on March 17, 2011. Thus, the acquisition was completed in the name of the Agency and had to thereafter be transferred to the SBEDC. The properties currently at issue were legally conveyed to the Agency on June 28, 2011, following the approval of the transfer of assets to the SBEDC, but are a part of and listed in that group of properties intended and approved for transfer to the SBEDC. The Agency's recommendation is to approve the transfer of the title of the properties APNs 0134-053-20, 21, 22, 23, 25 and 26, and APNs 0134-054-07, 08 and 09 in furtherance of the redevelopment purposes of the Agency pursuant to the motion approved on March 17, 2011, item number 2 pursuant to Section 2.01(c) of the Project Funding Agreement (CDC/2011-9) approving the transfer of assets to the SBEDC including: APNs 0134-053-20, 21, 22, 23, 25 and 26, and APNs 0134-054-07, 08 and 09. ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: None. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Executive Director Emil A. Marzullo, I P:\Agendas\Comm Dev Commission\CDC 2011 \08-0 1-11 Salvation Anny SR.doc COMMISSION MEETING AGENDA Meeting Date: 08/0112011 Agenda Item Number: ~ 1 2 3 4 5 6 7 8 9 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE TRANSFER OF THE SALVATION ARMY PROPERTIES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO THE SAN BERNARDINO ECONOMIC DEVELOPMENT CORPORATION ("SBEDC") PURSUANT TO THE APPROVAL OF THE TRANSFER OF ALL REAL PROPERTY ASSETS OF THE AGENCY TO THE SBEDC ON MARCH 17, 2011 IN ACCORDANCE WITH THE PROJECT FUNDING AGREEMENT (CDC/2011-9) WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation 10 and charter city, duly organized and existing pursuant to the provisions of the constitution of the 11 State of California; and 12 WHEREAS, the Community Development Commission of the City of San Bernardino (the 13 "Commission") is the governing body of the Redevelopment Agency of the City of San Bernardino 14 (the "Agency"), a public body, corporate and politic, organized and existing pursuant to the 15 California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "CRL"); and 16 17 WHEREAS, the Agency was established by appropriate action of the City, for the purposes 18 of exercising redevelopment powers within the City boundaries through the adoption and approval 19 of various redevelopment project areas that are currently in existence within the City (the "Project 20 Areas") as further described in the applicable redevelopment plans accompanying such Project 21 Areas (the "Redevelopment Plans"); and 22 WHEREAS, the San Bernardino Economic Development Corporation (the "SBEDC") was 23 formed pursuant to the non-profit corporation laws of the State of California, and currently exists for 24 the purposes of assisting in the implementation of various redevelopment initiatives within the City 25 and to undertake such other activities, programs and projects of the Agency and the City as are then 26 deemed advisable by SBEDC through its board of directors; and 27 WHEREAS, on March 17, 2011, at the Joint Special meeting of the San Bernardino City 28 Council (the "Council") and the Commission, the Commission approved the transfer of all real P:\Agendas\Resolutions\Resolutions\2011\OS.OI-IJ Salvation Army CDC Reso.doc 1 1 property assets of the Agency to the SBEDC pursuant to Section 2.01(C) of the Project Funding 2 Agreement (CDC/2011-9) (the "Project Funding Agreement"); and 3 WHEREAS, on May 2, 2011, at the Joint Regular meeting of the Council and the 4 Commission Closed Session, the Commission approved the purchase and terms of the Salvation 5 Army properties on 5th and Spruce Streets, known as APNs 0134-053-20, 21, 22, 23, 25 and 26 and 6 0134-054-07,08 and 09 (hereinafter referred to as the "Salvation Army Properties"). 7 WHEREAS, in order to further the redevelopment purposes of the Agency pursuant to 8 Section 2.01(C) of the Project Funding Agreement (CDC/2011-9), the Agency acknowledges its 9 formal acceptance of the deeds for the transfer of the Salvation Army Properties and authorizes the 10 conveyance of said Salvation Army Properties to the SBEDC, as further approved on March 17, 11 2011 for the properties then held by the Agency; and 12 WHEREAS, the Commission has duly considered the terms of such transactions as 13 contemplated herein and has determined that it is in the best interests of the City and Agency to 14 approve and authorize the acceptance and conveyance of the deeds to the Salvation Army 15 Properties, and thus desire to approve and authorize said aforementioned acceptance and 16 conveyance. 17 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 18 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 19 FOLLOWS: 20 Section 1. Approvals. The Commission hereby approves the Agency's formal 21 acceptance of the deeds for transfer of the Salvation Army Properties pursuant to the Agency's 22 purchase of the Salvation Army Properties as authorized on May 2, 2011, and the transfer and 23 conveyance of the Salvation Army Properties to the SBEDC as herein authorized in furtherance of 24 the redevelopment purposes of the Agency pursuant to ofthe Project Funding Agreement. 25 Section 2. Official Action. 26 The Interim Executive Director of the Agency is hereby authorized to execute any and all 27 assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, 28 warrants and other documents on behalf of the Agency as may be approved by the Interim P:\AgendasIResoJutionslResolutions\201I\08-01-1] Salvation Army CDC Reso,doc 2 1 Executive Director of the Agency, City Attorney and Agency Counsel. The Interim Executive 2 Director of the Agency or such other designated representative of the Agency is further authorized 3 to do any and all things and take any and all actions as may be deemed necessary or advisable to 4 effectuate the purposes of any and all documents, including making non-substantive modifications. 5 Section 3. Effective Date. This Resolution shall take effect from and after its date of 6 adoption by this Commission. 7 1/1 8 /II 9 1/1 10 /II 11 /II 12 /II 13 /II 14 /II 15 /II 16 I I 17 /II 18 /II 19 /II 20 /II 21 /II 22 1/1 23 /II 24 /II 25 /II 26 1/1 27 /II 28 1/1 P:lAgendas\Resolutions\Resolutions\201 ]108_01_11 Salvation Army CDC Rcso.doc 3 8 Development Commission ofthe City of San Bernardino at a , 2011, by the following vote, to wit: The foregoing Resolution is hereby approved this 21 22 23 24 1 2 3 4 5 6 7 20 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE TRANSFER OF THE SALVATION ARMY PROPERTIES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO THE SAN BERNARDINO ECONOMIC DEVELOPMENT CORPORATION ("SBEDC") PURSUANT TO THE APPROVAL OF THE TRANSFER OF ALL REAL PROPERTY ASSETS OF THE AGENCY TO THE SBEDC ON MARCH 17, 2011 IN ACCORDANCE WITH THE PROJECT FUNDING AGREEMENT (CDC/2011-9) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community meeting Nays Abstain Absent Secretary day of ,2011. Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino P:\Agendas\Resolulions\Resolutions\201l\08-OI-ll Salvation Army CDC Reso_doc 4