HomeMy WebLinkAbout01-Redevelopment AgencyRedevelopment Agency City of San Bernardino
300 North "D" Street, Fourth Floor • San Bernardino, California 92418
(714) 384-5081 FAX (714) 888-9413
OCTOBER 4, 1989
Stevee H. Dukett
Executive Director
ARROWHEAD HEALTH CARE SYSTEM - AMENDED DDA
Pride ~
to Progress
Synopsis of Previous Commission/Council/Committee Action:
09/21/89 The Committee reviewed the item and recommended approval.
Recommended Motion:
(MAYOR AND COMMON COUNCIL)
A> To adopt a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO.
B> To set a joint public hearing at 9:00 a.m. on October 16, 1989 for
the purpose of considering a TEFRA Resolution.
(COMMUNITY DEVELOPMENT COMMISSION)
C> To approve execution of a Second Amendment to the Disposition and
Development Agreement with Arrowhead Health Care System, Inc.
D> To authorize the execution of a Cooperative Agreement between the
City of San Bernardino and the Community Development Commission of
the City of San Bernardino.
E> To set a joint public hearing at 9:00 a.m. on October 16, 1989 for
the purpose of considering a TEFRA Resolution.
Respectfully Submitted,
~ - ; ~,
C '~-rv ,;J --~.
~ es Robbins, Acting Executive Director
upporting data attached: YES
FUNDING REQUIREMENTS: $380,000
Commission Notes:
ra:
Project: NW
EJ:sm:2391H Agenda of: October 5, 1989
Item No.
~~
Redevelopment Agency
S T A F F R E P O R T
This is to request that the Commission approve a Second Amendment to the
Disposition and Development Agreement (DDA) with Arrowhead Health Care
System, Inc., as well as to approve a cooperative agreement under which
the Agency will pay $380,000 on behalf of Arrowhead Health Care and to
set a public hearing for a TEFRA resolution authorizing issuance of
refinancing bonds for the hospital.
BACKGROUND
On November 20, 1986, the Redevelopment Agency entered into a DDA with
San Bernardino Community Hospital, which was amended on May 2, 1988. It
provided that the Agency would sell a 5.31 acre site to Community
Hospital who would develop an 80-100,000 square foot medical office
building.
As escrow did not close by September 1, 1988, the project has been in
technical default. The primary reason for the default is that Arrowhead
Health Care had considerable difficulty obtaining financing and a
developer to develop the site.
In February, 1989 Arrowhead Health Care System, Inc. (the successor to
Community Hospital) requested that the Agreement be again amended to show
a new time schedule and to show Arrowhead Health Care System Inc. as the
contracting corporation instead of San Bernardino Community Hospital.
Arrowhead also requested that the City issue bonds to refinance their
existing debt as a result of the currently favorable interest rates.
Finally, Arrowhead requested that the Agency reimburse them for the cost
of the 1% issuer's fee associated with the refinancing.
PROPOSED AMENDMENT
Over the past several weeks there has been a series of meetings between
Agency staff and Arrowhead Health Care representatives. The following
issues have been resolved and are in the proposed amendment:
* The site will be conveyed immediately although development is
not ready to proceed because financing and development permits
are not in place;
The Agreement will not allow encumbrances of the site until
Arrowhead Health Care has an irrevocable construction loan
commitment;
* If the project does not go forward Arrowhead Health Care has
the option to return the property or purchase at its full
market value;
EJ:sm:2391H
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Redevelopment Agency
* Arrowhead will be reimbursed for the cost of the land from tax
increment produced by the project;
* Arrowhead Health Care must build a minimum of 50,000 square feet in
two stories with a value of at least $5,000,000;
* Construction is to start no later than twelve (12> months after
conveyance of title and is to be completed no later than eighteen
(18> months after commencement of construction; and
* Agency will reimburse Arrowhead Health Care System, Inc., their
actual cost of the 1~ issuer's fee associated with the refinancing
of the Community Hospital Bonds in accordance with the cooperative
agreement between the Agency and the City of San Bernardino (fee
estimated to be $380,000>.
In order to accomplish the refinancing for the hospital, it will be
necessary to set a public hearing and adopt a TEFRA resolution for
issuance of the bonds. Arrowhead's legal counsel, Orrick Herrington &
Sutcliff, has advertised the public hearing for 9:00 a.m. on October 16,
1989.
RECOMMENDATION:
On October 2, 1989, Agency staff and Arrowhead Health Care completed
discussions on the amendment and we expect to receive the executed
document from Arrowhead prior to this meeting. Special Counsel and
General Counsel have both reviewed the amendment. It is therefore
recommended that subject to receiving a signed copy from Arrowhead, the
Commission approve a Second Amendment to the Disposition and Development
Agreement (DDA> with Arrowhead Health Care System, Inc., as well as
approve a cooperative agreement with the City and set a public hearing
for the TEFRA resolution.
EJ:sm:2391H
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed
to execute on behalf of said City an Agreement between the City
of San Bernardino and the Community Development Commission of the
City of San Bernardino, which agreement is attached hereto,
marked Exhibit "A", and incorporated herein by reference as fully
as though set forth at length.
SECTION 2. The authorization to execute the above-
referenced agreement is rescinded if the parties to the agreement
fail to execute it within sixty (60) days of the passage of this
resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on the
day of 1989, by the following vote, to wit:
AYES: Council Members
NAYS:
ABSENT:
City Clerk
/ / /
/ / /
DAB/ses
October 2, 1989
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO.
The foregoing resolution is hereby approved this day
of 1989.
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
By
DAB/ses
October 2, 1989
W.R. Holcomb, Mayor
City of San Bernardino
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1 ~, - U c} - G ~ 1 V :J f 1-ilVl ~ ;~, i L ~ 11 1V C VV f ~ ~ ~ 4 D C C1 ~- 11 L~ H
COOPERATIVE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND THE
COMMUNITY DEVELOPMENT COMMISSZON OF THE
CITY OF SAN HERNARDINO
THIS COOPERATIVE AGREEMENT (the "Agreement^) is hereby made
and entered into as of
1989, by and between the
CITY OF SAN BERNARDINO (the "City") and the COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (the
"Agency").
RECITALS
A. WHEREAS, the City has issued the City of San
Bernardino Hospital Reserve Bonds (San Bernardino Community
Hospital) Series 1985A in the principal amount of Thirty-Eight
Million Dollars (38,000,000); and
S. WHEREAS, there is an issuer's fee due to the City of
one percent (lac) of the principal amount (the "Issuer's Fee")
or Three Hundred Eighty Thousand Dollars ($380,000); and
C. WHEREAS, there are presently available to the Agency
funds generated by the Northwest Redevelopment Project Area
(the "Project Area") which the Agency is willing to use to pay
the Issuer's Fee to the City on the basis set forth in
Section 2 of this Agreement.
NOW, THEREFORE, the City and Agency agree as follow:
i. The Agency agrees to pay the Issuer's Fee of Three
Hundred Eighty Thousand Dollars ($380,000) to the City.
2. The City shall, in consideration of such payment, be
obligated to devote the funds paid by the Agency pursuant to
the preceding paragraph to expenditures within or of benefit to
the Northwest Redevelopment Project Area that would be
expenditures which the Agency could lawfully make pursuant to
Section 33445 of the California Health & Safety Code.
3. There shall be no third party beneficiaries to this
Agreement.
4. This Agreement shall be effective as of the day and
date first above shown.
CITY OF SAN BERNARDINO
Dated: By:
Mayor
ATTEST:
By:
City Clerk
09/28/89
6606n/2601/008 - 2 -
APPROVED AS TO FORM AND CONTENT
FOR THE CITY
By : ~- ~-,~-~-.
ty Attorney
Dated:
APPROVED AS TO FORM
AND FOR THE
AG CY
Agency Counsel
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
SAN BERNARDINO
By:
Executive Director
09/28/89
6606n/2601/008 - 3 -
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IPM47CA
4-0081905278 10/05/89
ICS IPMRNCZ CSP
9162592182 FRB TDRN LAKE ALAMOR CA 24 10-05 1O4OA EST
PMS SAN BERNARDINO CITY COUNCIL, DLR
ATTN PHIL ARVIZO, DLR ASAP
299 NORTH D ST
SAN BERNARDINO CA 92401
I HEREBY WAIVE NOTICE OF SPECIAL MEETING OF MAYOR AND COUNCIL AND
COMMUNITY DEVELOPMENT COMMISSION TO BE HELD AT 4 PM OCTOBER 5, 1989.
NORINE MILLER,
SAN BERNARDIIVO CITY COUNCILWOMAN
1043 EST ~ ~~ ~
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HYP~TT REGENCY~'~ SACRAMENTO
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vvnere ao
NOTICE OF SPECIAL MEETING
OF THE COMMUNITY DEVELOPMENT COMMISSION
Of THE CITY Of SRN BERNARIDNO, CALIFORNIA
October 5, 1989
NOTICE IS HEREBY GIVEN that Chairman W. R. "Bob" Holcomb, does hereby
call a Special Meeting of the Mayor and Common Council and the Community
Development Commission of the City of San Bernardino, California for 4:00
p.m., Thursday, October 5, 1989. -Said meeting will be held in the
.~
Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "D"
Street, San Bernardino, California.
The purpose for which this meeting has been called is to discuss the
following:
(MAYOR AND COMMON COUNCIL)
A) To adopt a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
;~' BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO.
B> To set a joint public hearing at 9:00 a.m. on October 16, 1989 for the
purpose of considering a TEFRA Resolution.
tCOMMUNITY DEVELOPMENT COMMISSION)
C> To approve execution of a Second Amendment to the Disposition and
Development Agreement with Arrowhead Health Care System, Inc.
D) To authorize the execution of a Cooperative Agreement between the City
of San Bernardino and the Community Development Commission of the City
of San Bernardino.
E) To set a joint public hearing at 9:00 a.m. on October 16, 1989 for the
purpose of considering a TEFRA Resolution.
ARLENE S.ERMAN
Assistant Secretary to the Community
Development Commission.
1860R/mv
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE
.AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY
'DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed
to execute on behalf of said City an Agreement between the City
of San Bernardino and the Community Development Commission of the
City of San Bernardino, which agreement is attached hereto,
marked Exhibit "A", and incorporated herein by reference as fully
as though set forth at length.
SECTION 2. The authorization to execute the above-
'.referenced agreement is rescinded if the parties to the agreement
fail to execute it within sixty (60) days of the passage of this
resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on the
day of 1989, by the following vote, to wit:
AYES: Council Members __ '~
NAYS:
ABSENT:
Citv Clerk
/ / /
/ / /
DAB/ses
October 2, 1989
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A COOPERATIVE
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO.
The foregoing resolution is hereby approved this day
of 1989.
W.R. Holcomb, Mayor
City of San Bernardino
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
By ~
DAB/ses
October 2, 1989
2
COOPERATIVE AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND THE
COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO
t
r ~;
THIS COOPERATIVE AGREEMENT (the "Agreement") is hereby made
and entered into as of
1989, by and between the
CITY OF SAN BERNARDINO (the "City") and the COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (the
"Agency").
RECITALS
A. WHEREAS, the City has issued the City of San
Bernardino Hospital Reserve Bonds (San Bernardino Community
Hospital) Series 1985A in the principal amount of Three Hundred
Eighty Million Dollars ($380,000,000); and
B. WHEREAS, there is an issuer's fee due to the City of
one percent (1$) of the principal amount (the "Issuer's Fee")
or Three Hundred Eighty Thousand Dollars ($380,000); and
C. WHEREAS, there are presently available to the Agency
funds generated by the Northwest Redevelopment Project Area
(the "Project Area") which the Agency is willing to use to pay
the Issuer's Fee to the City on the basis set forth in
Section 2 of this Agreement.
NOW, THEREFORE, the City and Agency agree as follow:
1. The Agency agrees to pay the Issuer's Fee of Three
Hundred Eighty Thousand Dollars ($380,000) to the City.
2. The City shall, in consideration of such payment, be
obligated to devote the funds paid by the Agency pursuant to
the preceding paragraph to expenditures within or of benefit to
the Northwest Redevelopment Project Area that would be
expenditures which the Agency could lawfully make pursuant to
Section 33445 of the California Health & Safety Code.
3. There shall be no third party beneficiaries to this
Agreement.
4. This Agreement shall be effective as of the day and
date first above shown.
Dated:
ATTEST:
By:
City Clerk
CITY OF SAN BERNARDINO
By:
Mayor
09/28/89
6606n/2601/008 - 2 -
APPROVED AS TO FORM AND CONTENT
FOR THE CITY
ty Attorney
Dated:
APPROVED AS TO FORM
AND NT FOR THE
AG CY ,
~- ~ ~c-L_
Agency Counse
THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
SAN BERNARDINO
By:
Executive Director
09/28/89
6606n/2601/008 - 3 -