HomeMy WebLinkAboutR44-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
ORIGiNAL
FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
Supplemental Agreement to the 2007 Property
Owner Participation Agreement by and
between the Agency and Inland Behavioral and
Health Services, Inc., at 655 North "D" Street,
San Bernardinn (Central City North
Redevelopment Project Area)
DATE: September 5, 2008
Synopsis of Previous Commission/Council/Committee Action(s):
On August 21,2008, Redevelopment Committee Members Estrada, Johnson and Baxter unanimuusly voted to recommend that
the Community Development Commission consider this action for approval.
Recommended Motionis):
(Communitv Develooment Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the
Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute a
Supplemental Agreement to the 2007 Property Owner Participation Agreement by and between the Agency and
Inland Behavioral and Health Services, Inc.
Contact Person(s):
Colin Strange
Phone:
(909) 663-1044
Proi ect Area( s):
Central City North
Redevelopment Project Area
Ward(s):
1.\1
Supporting Data Attached:
o Staff Report 0 Resolution(s) 0Agreement(s)/Contract(s) D Map(s) D Letter(s)
FUNDING REQUIREMENTS:
Amount: $ 342,000
Source:
Community Reinvestment Funds
Budget Authority:
2008-2009 EDA Budget
SIGNATURE:
EmilA.
?
Fiscal Review: ~" ~[U u J')Js<~
Barbara Lindseth, Administrative Services irector
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P\Agendas\Comm De" Comm;,sionlCDC 1008\09-15-08 IBHS Supplemental Agreelnenl SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 09/1512008
Agenda Item Number: (<44
e!f-{5-<JfJ
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SUPPLEMENTAL AGREEMENT TO THE 2007 PROPERTY OWNER PARTICIPATION
AGREEMENT BY AND BETWEEN THE AGENCY AND INLAND BEHAVIORAL
AND HEALTH SERVICES, INC., AT 655 NORTH "D" STREET, SAN BERNARDINO
(CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
BACKGROUND:
On February 20, 2007, the Community Development Commission of the City of San Bernardino
("Commission") approved a 2007 Property Owner Participation Agreement (the "Agreement") by and
between the Redevelopment Agency of the City of San Bernardino (the "Agency") and Inland
Behavioral and Health Services, Inc. ("IBHS"). IBHS was under construction on a 28,340 square foot
clinic (the "Project") at 655 North "D" Street (See attached Exhibit "A") in the City of San Bernardino
(the "City"), designed to provide quality medical, obstetric, gynecological, pharmaceutical, primary
health care, mental health treatment and social services to the medically underserved communities of
the City. The Project had been conditioned with unanticipated and unfunded requirements by the City
related to construction of certain improvements to the public right-of-way on "D" and irli Streets,
including the widening of "D" Street, the relocation of utility poles and the installation of a new curb,
gutter, sidewalks and landscaping at a cost then estimated to be $265,000. Therefore, IBHS requested
Agency assistance to help fund this work. Accordingly, the Commission approved the Agency's
participation in the amount of $265,000. The Agreement provided for a reimbursement period of one
year after the date of execution of the Agreement within which the Project was to have been
completed, documentation submitted to the Agency and the reimbursement amounts remitted to IBHS.
CURRENT ISSUE:
While the work on the clinic has proceeded to the point that the clinic is now operational, the work to
the public right-of-way fell behind schedule, specifically the relocation of the utility poles by Southern
California Edison. The work was ordered in September of 2006; however, it was completed in April
of 2008. IBHS has provided the Agency with documentation relating to the Project on a continuous
basis; however, in September of 2007, an additional $77,000, worth of additional unbudgeted and
unfunded public right-of-way improvements on 7th Street were placed upon the Project by the City.
There were also a number of design issues pertaining to the clinic building at that time that have since
been successfully resolved in the interim. IBHS has therefore requested that a Supplement to the
Agreement be authorized waiving the time period to submit for reimbursements requests eliminated
and increasing the amount of the permissible reimbursements by an additional $77,000, to a total of
$342,000, with all other terms and conditions remaining the same.
The work on the entrances has been placed on an indefinite hold until IBHS can obtain additional cash
flow amounts to either pay directly for such construction costs or to pay debt service on the required
construction amounts. The Development Services Department has indicated to IHBS that a final
occupancy certificate will be issued without the present requirement for the completion of the two
entrances to the IHBS building at this time.
PlAgendas\Comm Dev Commission\CDC 2008\09-15-08lBHS - Supplemental Agreement SR,doc
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2008
Agenda Item Number: R..4Q
f-f;.()8
Economic Development Agency Staff Report
IBHS - Supplemental Agreement
Page 2
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
~
~ ....<:
Emil A. Marzullo, Interim xecutive Director
P\AgendaslComm Dev CommissionlCDC 2008\09-15-08 IBH$ - Supplemental Agreement SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2008
Agenda Item Nnmber: /Ztfe.{
q-(').(/J
EXHIBIT "A"
Legal Description of the Property
The north of lot 4, block 51 of the City of San Bernardino, APNs: 0140-282-37, 38, 49,
50, 56 in the City of San Bernardino, County of San Bernardino, State of California, as
per map recorded in Book 7, page 1 of maps, in the Office of the County Recorder;
and
That portion of lot 3, block 51 of the City of San Bernardino, APNs: 0135-011-020 in the
City of San Bernardino, County of San Bernardino, State of California, as per map
recorded in Book 7, page 1 of maps, in the Office of the County Recorder.
P:\Agendas\Agenda Attachmenls\Exhibils\2008\09-15-QS lBHS Supplemental Agreement Exhibit A.doc
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RESOLUTION NO.
4
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE A SUPPLEMENTAL AGREEMENT TO THE 2007 PROPERTY
OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE
AGENCY AND INLAND BEHAVIORAL AND HEALTH SERVICES, INC.
(CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
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6
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WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a
public body, corporate and politic existing under the laws of the State of California, Health and
Safety Code 33000, et seq., and is charged with the mission of redeveloping blighted and
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underutilized land; and
WHEREAS, Inland Behavioral and Health Services, Inc., a California non-profit corporation
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(the "Developer"), is the ov-mer of certain Property located in the redevelopment project area
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described in the Redevelopment Plan ("Plan") for the Central City North Redevelopment Project
Area ("Project Area"); and
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WHEREAS, the Developer has undertaken a project on the site which consists of a
medical clinic of approximately 28,340 square feet ("Project") providing quality medical,
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obstetric, gynecological, pharmaceutical and dental services to the medically underserved
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communities of the City of San Bernardino (the "City") as well as on-site primary health care,
mental health treatment, and other types of medical and social services to be provided within the
Project Area; and
WHEREAS, on February 7, 2007, the Community Development Commission of the City
of San Bernardino ("Commission") adopted Resolution No. CDC 2007-65 approving a 2007
Property Ov-mer Participation Agreement in the amount of $265,000 to help off-set the costs of
unfunded and unanticipated requirements conditioned by the City related to construction of
certain improvements to the public right--{)f-way on "D" and 7th Streets, including but not limited
to, street widening on "D" Street, relocation of utility poles and new curb, gutter, sidewalk and
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landscaping ("Public lmprovements")at an estimated cost of $265,000 causing the Developer to
1
p...I,gen.hs'Resolulions'Re5olutions2008()<l-1 ~-os IBHS Supplemental Agreement CDC Reso doc
1 request certain assistance and reimbursements from the Agency to help off-set the cost of the
2 Public Improvements; and
3 WHEREAS, the actual costs of the unfunded and unanticipated requirements to the public
4 right-of-way conditioned by the City upon the Project amount to $342,000; and
5 WHEREAS, the Project is consistent with the goals of the Plan; and
6 WHEREAS, the Project will assist the Agency in accomplishing its goal to reduce blight in
7 the Project Area described in the Plan for the Project Area pursuant to the California Community
8 Redevelopment Law; and
9 WHEREAS, it is appropriate for the Commission to approve a Supplemental Agreement
10 ("Supplemental Agreement") to the 2007 Property Owner Participation Agreement between the
11 Agency and the Developer.
12 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
13 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
14
Section 1.
The Commission hereby approves the Supplemental Agreement and hereby
15 approves and authorizes the Interim Executive Director of the Agency to execute the
16 Supplemental Agreement on behalf of the Agency. The Interim Executive Director of the
17 Agency is hereby authorized to make minor corrections, additions and clarifications to the
18 Supplemental Agreement, provided said changes are not substantive in nature, are approved by
19 Agency Counsel and do not increase the monetary impact to the Agency under the terms of the
20 Agreement as hereby approved.
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The Resolution shall become effective immediately upon its adoption.
Section 2.
P\A..gendas'Resolut;ons"Resolut;on5\200S'.o9-15-08 rBHS Sl1pplememal Agreement CDC Reso doc
2
.
1
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE A SUPPLEMENTAL AGREEMENT TO THE 2007 PROPERTY
OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE
AGENCY AND INLAND BEHAVIORAL AND HEALTH SERVICES, INC.
(CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
3
4
5
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a
meeting
8 thereof, held on the day of
9 Commission Members: Aves Navs
10 ESTRADA
11 BAXTER
12 BRINKER
13 DERRY
14 KELLEY
15 JOHNSON
16 MC CAMMACK
17
, 2008, by the following vote to wit:
Abstain
Absent
Secretary
18 The foregoing Resolution is hereby approved this
day of
,2008.
19
20
21
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
Approved as to Form:
22 -tIJ L
23 By: ~~~v
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P'Agendas'Resolulions'Resolutions'1008'O<)-1~-08 IDHS Supplemental Agret:menl CDC Reso doc
INLAND BEHAVIORAL AND HEALTH SERVICES, INC.
SUPPLEMENTAL AGREEMENT TO THE 2007 PROPERTY OWNER
PARTICIPATION AGREEMENT
(CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA)
This Supplemental Agreement (this "Supplemental Agreement") to the 2007 Property
Owner Participation Agreement dated February 20, 2007 (the "Agreement"), is entered into as of
September 2, 2008 (the "Effective Date"), by and between the Redevelopment Agency of the
City of San Bernardino (the "Agency"), a public body, corporate and politic, and Inland
Behavioral and Health Services, Inc., a California non-profit corporation (the "Developer").
RECITALS
WHEREAS, on February 20, 2007, the Community Development Commission of the
City of San Bernardino (the "Commission") adopted Resolution No. CDC/2007-4, approving
the Agreement (the "Agreement") between the Agency and the Developer for the purposes of
constructing certain improvements at the Property (as defined below); and
WHEREAS, the Developer is the fee owner of certain lands situated at 655 North "D"
Street, San Bernardino, California (APNs: 0140-282-37,38,50,56 and 49 and APN: 0135-011-
20) (collectively, the "Property") as depicted on Exhibit "A" attached hereto and incorporated
herein by reference; and
WHEREAS, the Developer has constructed a 28,340 square foot medical center (the
"Building") on the Property, which is approximately 1.3 acres in size bringing quality medical,
obstetric, gynecological, pharmaceutical and dental services to the medically underserved
communities of the City as well as providing on-site primary health care and mental health
treatment and other types of medical and social services; and
WHEREAS, the Developer has constructed and completed the Development Project (as
defined in the Agreement) in accordance with and pursuant to the Agreement; and
WHEREAS, the cost of acquisition and construction of the Development Project is in
excess of $9,000,000; and
WHEREAS, the Developer has designed, constructed, installed and completed the
improvements described in Exhibit "D" to the Agreement (collectively, the "Off-Site
Improvements") based upon evidence submitted by the Developer to the Agency; and
WHEREAS, the Developer has spent $265,000 plus an additional $59,840.75, in cost
over-runs (the "Cost Over-Runs"), to design, construct, install and complete the Off-Site
Improvements as required by the City of San Bernardino after the construction of the
Development Project had commenced and funding was obtained; and
WHEREAS, the Developer has requested the Agency to reimburse and to pay to the
Developer: (i) the Improvement Cost Reimbursements (as defined in the Agreement), in the
amount of $265,000, and (ii) the Cost Over-Runs in the amount of $59,840.75, in the aggregate
amount of $324,840.75; and
P.\Agendas\Agenda Attachmems\Agrmts-Amend 2008\09-15-08lBHS Supplemental Agrecmentdoc
WHEREAS, the Agency is willing to pay and reimburse the Developer for the
Improvement Cost Reimbursements in the amount of $265,000 and for the Cost Over-Runs in
the amount of $59,840.75, in the aggregate amount of $324,840.75, in accordance with this
Supplemental Agreement; and
WHEREAS, when fully operational, the Development Project will generate
approximately 300 new jobs earning a minimum average income of approximately $40,000 per
year.
NOW, THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE
AS FOLLOWS:
Section 1. The Recitals set forth above in this Supplemental Agreement are true and
correct in all respects and are incorporated herein by this reference.
Section 2. For purposes of this Supplemental Agreement all terms not otherwise
defined in this Supplemental Agreement shall have the meanings provided for in the Agreement.
Further, this Supplemental Agreement shall become effective (the "Effective Date") on the day
that all of the following have finally occurred: (i) a duly authorized representative of the
Developer executes and delivers to the Agency an original of this Supplemental Agreement, (ii)
a duly authorized representative of the Agency executes and delivers to the Developer an original
of this Supplemental Agreement, (iii) and the Community Development Commission of the City
of San Bernardino approves this Supplemental Agreement, by resolution at a duly called
meeting.
Section 3. Notwithstanding anything to the contrary contained in the Agreement,
induding, the dollar limitations and the time requirements for the remittance of the Improvement
Cost Reimbursements, within thirty (30) days from and after the Effective Date, the Agency
Staff shall review and verify all requests from the Developer for the Improvement Cost
Reimbursements and the Cost Over-Runs and thereafter reimburse and pay to the Developer the
Improvement Cost Reimbursements in the amount not to exceed $265,000 and an additional
amount not to exceed $77,000 for the Cost Over-Runs for a total aggregate amount not to
exceed $342,000. Subject to final review and verification by the Agency Staff, the Developer
has submitted certain detailed information to allow Agency Staff to verify that the Developer has
spent the amounts set forth herein as the Improvement Cost Reimbursements and the Cost Over-
Runs and to verify that all other conditions for the construction of public infrastructure within
existing City of San Bernardino public rights-of-way, and to verify that all such public
infrastructure has been approved and accepted by the Public Works Department of the City of
San Bernardino.
Section 4. Except as modified or amended by this Supplemental Agreement, all of
the provisions of the Agreement shall remain in full force and effect following the Effective Date
of this Supplemental Agreement.
2
P \Agendas\Agenda Attachments\Agrmts-Amend 2008\09-15-08 rBHS Supplemental Agr~men!.doc
IN WITNESS WHEREOF, the Developer and the Redevelopment Agency of the City of
San Bernardino have executed this Supplemental Agreement as of the dates written next to the
signatures of their duly authorized representatives, below.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
By;
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content;
By; V".,_~M L
gencyC6un~F
DEVELOPER
Inland Behavioral and Health Services, Inc.,
a California non-profit corporation
Date;
By;
Dr. Temetry A. Lindsey, Chief Executive Officer
3
PAgendas\Agenda Anaclunents\Agrmts-Amend 2008\09.15-08 [BHS Supplemental Agret'mentdoc
EXHIBIT "A"
The Property
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PlAgelldaslAgenda Attaehmerns\Agrmts_Amend 2008",09-15.08 IBHS Supplemental Agreement.doc
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EXHIBIT "D"
Description of Improvement Cost Reimbursements
1. Public right-of-way improvements, including removal of existing curb,
gutter and sidewalks and relocating and replacing same on "D" Street.
2. Relocation of utility poles to accommodate the new conditioned right-
of-way on "D" Street.
3. Additional 4" water line to Property.
Total Improvement Cost Reimbursements
5
P:lAgclId.a.slAgendo. Attachmellts\Agrmts.Amernl2008\09_15-08 IBHS Suppli:mental ~mc:lIl.doc
$ 184,000
$41,000
$40,000
$265,000
City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Redevelopment. Economic Development. Housing & Community Development
'"
September 24, 2008
Inland Behavioral and Health Services, Inc.
Attention: Dr. Temetry A. Lindsey, Chief Executive Officer
655 North "D" Street
San Bernardino, California 92401
Re: Inland Behavioral and Health Services, Inc., Supplemental Agreement to the 2007
Property Owner Participation Agreement (Central City North Redevelopment Project
Area)
Dear Dr. Lindsey:
Enclosed for your records is a fully executed Agreement as referenced above that was approved by
the Community Development Commission of the City of San Bernardino on September IS, 2008
(Resolution CDC/2008-36).
Should you have any questions regarding this matter, please feel free to call me or Wasana Chantha
at (909) 663-1044.
Sincerely,
C)($~<-
Lorrafne B. Wyche
Secretary
Enclosure:
Inland Behavioral and Health Services, Inc., Supplemental Agreement to the 2007
Property Owner Participation Agreement (Central City North Redevelopment Project
Area)
cc: Colin Strange, Project Manager (with Copy of Executed Agreement)
Margaret Fedor, City Clerk's Office (with Original Executed Agreement)
Barbara Lindseth (with Original Executed Agreement)
Wasana Chantha, Executive Secretary
File
P:\Clcrical SeTviccs Dept\Lomline\Lcuers\2008\09-24..QSIBHS - EXel;\lloo Agreement (Supplemental Agml.).doc
201 North E Street. Suite 301 . San Bernardino. California 92401-1507. (909) 663-1044. Fax (909) 888-9413
www.sanbernardino-eda.org