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Home My WebLink About08-15-1988 Regular Meeting (backup only) COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO M I NUT E S Regular Meeting August 1, 1988 11:27 a.m. The Community Development Commission/Redevelopment Agency meeting was called to order at 11 :27 a.m., on Monday, August 1, 1988, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California, by Chairman Evy1n Wilcox. ROLL CALL Roll call was taken with the following being present: Chairman Wilcox; Members Esther Estrada; Jess Flores; Michael Mauds1ey; Norine Miller; Jack Reilly; Tom Minor; Valerie Pope-Ludlam. STAFF PRESENT James E. Robbins, Acting Executive Director; Lorraine Velarde, Administrative Division Manager; John Hoeger, Development Division Manager; Dennis Barlow, Senior Assistant City Attorney; Margie Vance, Recording Secretary; Shauna Clark, City Clerk. PUBLIC: Brief comments by general public. There were none. (1) APPROVAL OF COMMISSION MINUTES Community Development Commission Member Minor made a motion, seconded by Member Mauds1ey, to approve the Minutes of July 11, 1988 and July 12, 1988 and July 18, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Mauds1ey, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. August 1, 1988 1482R J (2) REDEVELOPMENT COMMITTEE MINUTES Community Development Commission Member Minor made a motion, seconded by Member Mauds1ey, to receive and file the Redevelopment Committee Minutes of July 21, 1988 The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (3) NORTHWEST REDEVELOPMENT PROJECT AREA COMMITTEE (NWPAC) - MINUTES Community Development Commission Member Minor made a motion, seconded by Member Maudsley, to receive and file the NWPAC minutes of April 11, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Mauds1ey, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (4) UPTOWN REDEVELOPMENT PROJECT AREA CITIZENS ADVISORY COMMITTEE (UTCAC) - MINUTES Community Development Commission Member Minor made a motion, seconded by Member Mauds1ey, to receive and file the UTCAC minutes of May 5, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (5) SOUTH VALLE REDEVELOPMENT PROJECT AREA CITIZENS ADVISORY COMMITTEE (SVCAC) - MINUTES Community Development Commission Member Minor made a motion, seconded by Member Mauds1ey, to receive and file the SVCAC minutes of November 20, 1987 and March 18, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. 2 August 1, 1988 1482R (6) MAIN STREET INC. PROJECT ACTIVITY REPORT (12-1-87 thru 6-30-88) Community Development Commission Member Minor made a motion, seconded by Member Mauds1ey, to Receive and File the Main Street, Inc. Project Manager's Activity Report (12-01-87 thru 6-30-88). The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Mauds1ey, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR (7) REQUEST FOR PROPOSALS - SPECIAL AGENCY AUDIT Community Development Commission Member Miller made a motion, seconded by Member Mauds1ey, to (A) accept the proposal and retain Peat Marwick to conduct a five-year audit of Redevelopment Agency travel and equipment expenditures as set forth in the RFP and their response dated July 14, 1988 and (B) that the budget for 1988-1989 include $7,500.00 for this special audit. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (8) MR. HARRY JACKS, PRESIDENT OF PROGRESSIVE MORTGAGE, REQUESTS A HEARING BEFORE THE COMMUNITY DEVELOPMENT COMMISSION REGARDING THE CONVERSION ON HIS BEAUTIFICATION LOAN INTO A GRANT. (continued from July 18, 1988) Community Development Commission Member Pope-Ludlam made a motion, seconded by Member Estrada, to continue this item to the August 15, 1988, Commission Meeting. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Mauds1ey, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. A discussion ensued. Chairman Wilcox, indicated that this item was continued from the July 18, 1988 Commission Meeting at the request of Mr. Harry Jacks and asked if he was in the audience. He was not present at the meeting. Dennis Barlow, Agency Counsel advised the Commission to continue the item to the August 15, 1988 Commission Meeting to allow Mr. Jacks an opportunity to address the Commission thus giving him the full benefit. Chairman Wilcox, instructed staff to send a Certified Mail, Return Receipt Requested to Mr. Harry Jacks notifying him of the continuance of his item to the August 15, 1988, Commission Meeting. 3 August 1, 1988 1482R (9) INTERNAL INVESTIGATION Community Development Commission Discussion, if any required, on the report prepared and previously submitted by the City Attorney's office. A discussion ensued. Chairman Wilcox, stated that the Commission had previously received from the City Attorney's office a report regarding RDA's Internal Investigation and asked if the Commission had any questions or comments. There were no questions nor comments. (10) PUBLIC HEARING - THAT THE MAYOR AND COMMON COUNCIL CONSIDER A COMMUNITY DEVELOPMENT BLOCK GRANT FLOAT LOAN FOR SHOPPING CENTER AT BASELINE STREET AND MEDICAL CENTER DRIVE. Chairman Wilcox opened the Public Hearing at 11:40 a.m. and asked for public comments. Ken Henderson, Director of Community Development stated that the staff report outlined the revenue sources for the project and the participating entities as follows: TOTAL $ 1,834,999 $ 2,000,000 $ 1,325,000 $ 500,000 $ 2,750,000 $ 1,250,000 $ 861 ,000 $10,520,000 Urban Development Action Grant: RDA Tax Allocation Bond: RDA Land Acquisition: Developer Equity: County Float Loan: City Float Loan: RDA Float Loan: The developer has committed to a private loan of $4,861,000 at eight point five percent (8.5%) interest for a term of thirty (30) years. This equates to an annual debt service of $448,670. Inasmuch as the developer obtained letters of credit make the $4,861,000 another form of private financing. It is also important to note that although the source of financing is public, the risk is private. (Should the project not succeed, the City, County and Agency would be repaid by the letters of credit and the developer on the hook for $4,861.000.) The Float Loan Reserve will earn $744,460 over a three (3) year period. A portion of the Float Reserve, $203,000, will be used to pay down the RDA Float Loan leaving the RDA Float Loan balance of $658,000, and a Float Loan Reserve balance of $541,730. Together the balances equal $1,200,000 which is used to bridge the gap between the developer's permanent loan of $3,661,000 and the total amount necessary for permanent financing $4,861,000. The interest rate, not incidentally, is eight point five percent (8.5%), the rate the developer has always maintained is necessary to make the project a success. 4 August 1, 1988 1482R The City and County are repaid their respective float loans, with interest, at the end of three (3) years when permanent financing is acquired. The Redevelopment Agency Tax allocation bond is repaid through tax increment generated by the Northwest Redevelopment Project Area, and the RDA float loan is repaid by the debt service on the permanent financing. Chairman Wilcox asked the Commission if they had any questions. No questions were asked. Mayor and Common Council The City Clerk read the title of the Resolution RESOLUTION NO. 88-287 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A LOAN OF A PORTION OF INTERIM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE BASELINE/MEDICAL CENTER DRIVE PROJECT. Member Estrada made a motion, seconded by Member Pope-Ludlam, to waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. A discussion ensued. Member Estrada asked Ken Henderson to clarify a public perception that the County is the major contributor of the project. Ken Henderson stated that 75% of the project's financing comes from the City sources either RDA or City. Chairman Wilcox, indicated that this is a case of cooperation between the City, the County and the private sector the developer to help make something happened in the West side of the City. Member Estrada made a motion, seconded by Member Pope-Ludlam, to adopt the resolution and to close the Public Hearing. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. 5 August 1, 1988 1482R (11) ADDITION/u~LETION OF SIGNATORIES FOR THE SAFETY DEPOSIT BOX AT AMERICAN NATIONAL BANK Community Development Commission The City Clerk read the titles of all of the resolutions. RESOLUTION NO. 5135 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING JAMES E. ROBBINS, ACTING EXECUTIVE DIRECTOR: GARY CLERMONT, ADMINISTRATIVE ASSISTANT: AND J. LORRAINE VELARDE, ADMINISTRATIVE SERVICES MANAGER, TO SIGN ON BEHALF OF THE REDEVELOPMENT AGENCY FOR SAFETY DEPOSIT BOX, AND REPEALING RESOLUTION NO. 4981. Member Flores made a motion, seconded by Member Maudsley, to waive further reading of all of the Resolutions. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. Member Flores made a motion, seconded by Member Miller, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (12) NW - PEC BUILDING #1 WESTSIDE DROP-IN CENTER LEASE Mayor and Common Council RESOLUTION NO. 88-288 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LEASE BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO RELATING TO THE PUBLIC ENTERPRISE CENTER - WESTSIDE DROP-IN CENTER. Member Pope-Ludlam made a motion, seconded by Member Estrada, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. 6 August 1, 1988 1482R Community Development Commis~.0n RESOLUTION NO. 5136 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LEASE BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO RELATING TO THE PUBLIC ENTERPRISE CENTER - WESTSIDE DROP-IN CENTER. Member Pope-Ludlam made a motion, seconded by Member Estrada, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (13) LEGAL SERVICES AGREEMENT Mayor and Common Council RESOLUTION NO. 88-289 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO RELATING TO LEGAL SERVICES. Member Flores made a motion, seconded by Member Reilly, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. Community Development Commission RESOLUTION NO. 5137 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO RELATING TO LEGAL SERVICES. Member Flores made a motion, seconded by Member Reilly, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. 7 August 1, 1988 1482R (14) WOOLWORTH BUILDING - THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS Community Development Commission RESOLUTION NO. 5138 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS. Member Minor made a motion, seconded by Member Flores, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Mauds1ey, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. Special Note: The resolution was adopted as it reads above but upon reviewing the resolution itself the recording secretary noticed that the wording of the Agenda Cover did not reflect the complete wording of the resolution. Although, the Commission approved the resolution, Agency Counsel has advised staff to re-submit this item with the appropriate wording to the August 15, 1988, Commission Meeting. The resolution for the Mayor and Common Council was left out and will also be presented at the next Commission meeting. (15) WEED ABATEMENT AGREEMENT Mayor and Common Council RESOLUTION NO. 88-290 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR WEED ABATEMENT SERVICES RELATING TO AGENCY-OWNED PROPERTIES. Member Miller made a motion, seconded by Member Mauds1ey, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. 8 August 1, 1988 1482R Community Development Commission RESOLUTION NO. 5139 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR WEED ABATEMENT SERVICES RELATING TO AGENCY-OWNED PROPERTIES. Member Miller made a motion, seconded by Member Maudsley, to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley, Pope-Ludlam. Noes: None. Abstain: None. Absent: None. (16) CLOSED SESSION Mayor and Common Council Proceed to conduct a Closed Session pursuant to Government Code Section 54956.9 (a), the Redevelopment Committee of the Community Development Commission/Redevelopment Agency of the City of San Bernardino will now convene in Closed Session to consider the pending litigation captioned "STATE COLLEGE - WEST SIDE CDC - LOAN", etc., et. al. Member Flores made a motion, seconded by Member Minor, to recess to closed session. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley. Noes: None. Abstain: Pope-Ludlam. Absent: None. Community Development Commission Proceed to conduct a Closed Session pursuant to Government Code Section 54956.9 (a), the Redevelopment Committee of the Community Development Commission/Redevelopment Agency of the City of San Bernardino will now convene in Closed Session to consider the pending litigation captioned "STATE COLLEGE - WEST SIDE CDC - LOAN", etc., et. al. Member Flores made a motion, seconded by Member Minor, to recess to closed session. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley. Noes: None. Abstain: Pope-Ludlam. Absent: None. 9 August 1, 1988 1482R (17) CLOSED SESSION Mayor and Common Council Proceed to conduct a Closed Session pursuant to Government Code Section 54956.9 (c), the Commission will meet in closed session to discuss prospective litigation. Member Flores made a motion, seconded by Member Minor, to recess to closed session. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley. Noes: None. Abstain: Pope-Ludlam. Absent: None. Community Development Commission Proceed to conduct a Closed Session pursuant to Government Code Section 54956.9 (c), the Commission will meet in closed session to discuss prospective litigation. Member Flores made a motion, seconded by Member Minor, to recess to closed session. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Miller, Flores, Minor, Maudsley. Noes: None. Abstain: Pope-Ludlam. Absent: None. MEETING RECESSED At 11 :51 a.m. the Community Development Commission/Redevelopment Agency recessed to Closed Session. MEETING RECONVENED At 12:05 p.m., The Community Development Commission/Redevelopment Agency meeting was called to order by Chairman Evlyn Wilcox. ROLL CALL Roll call was taken with the following being present: Chairman Wilcox, Members Jess Flores, Michael Maudsley, Tom Minor, Jack Reilly. Absent: Esther Estrada, Norine Miller, Valerie Pope-Ludlam. STAFF PRESENT J. Lorraine Velarde, Administrative Division Manager; John Hoeger, Development Division Manager; Dennis Barlow, Senior Assistant City Attorney; Margie Vance, Recording Secretary; Shauna Clark, City Clerk. 10 August 1, 1988 1482R Member Maudsley made a motion, seconded by Member Minor, to continue Items 16 and 17 to the August 15, 1988 Commission Meeting. The motion carried by the following vote: Ayes: Members Reilly, Flores, Minor, Maudsley. Noes: None. Abstain: None. Absent: Estrada, Miller, Pope-Ludlam. Member Minor made a motion, seconded by Member Flores, to adjourn to August 15, 1988. The motion carried by the following vote: Ayes: Members Reilly, Flores, Minor, Maudsley. Noes: None. Abstain: None. Absent: Estrada, Miller, Pope-Ludlam. ADJOURNMENT Community Development Commission The Community Development Commission/Redevelopment Agency meeting adjourned to Monday, August 15, 1988, at 11 :00 a.m., in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. 11 August 1, 1988 1482R MINUTES REDEVELOPMENT COMMITTEE Time: 4:20 p.m., Thursday, August 4, 1988 Place: Redevelopment Agency Conference Room Roll Call: Committee Members Esther Estrada, Chairman; Jess Flores, Michael Maudsley; James E. Robbins, Acting Executive Director; John Hoeger, Redevelopment Agency; Lorraine Velarde, Redevelopment Agency; Gary B. Wagoner, Development Specialist, Redevelopment Agency; Ann Harris, Mainstreet; Dennis Barlow, Senior Assistant City Attorney; Jim Richardson, Deputy City Administrator; Phil Arvizo, Executive Assistant to Council; Pat Gonzales, Mayor's Administrative Assistant; Greg Garcia, Project Coordinator; Scott Rodde, National Development Council; Pat McGreevy, Reporter for the Sun; Rosalie Morales, Secretary. ITEM NO. 1 ACCOUNTS RECEIVABLE The Committee directed that two letters be sent. The first letter to Mr. Cole over Chairman Estrada's signature requesting detailed documentation including any correspondence from the Agency requesting his participation on behalf of the agency and services rendered on behalf of the Agency to justify the expenditures charged to the Agency in writing to Barbara Lindseth, Manager, Accounting Division; Redevelopment Agency; 300 North D Street, Fourth Floor; San Bernardino, CA 92418. The Committee requested that Mr. Cole respond in writing by Monday, August 15, 1988 so that the letter may be addressed by the Redevelopment Committee on Thursday, August 18, 1988 meeting. Mr. Cole is invited to address and/or answer questions of the Committee also at that time. A second letter directed to Commission Member Pope-Ludlam also under Chairman Estrada's signature. Chairman Estrada stated that the Commission Member Pope-Ludlam's letter should identify the following two issues: 1. The letter should state that the Committee is addressing the issue of the Cole Transportation separately. 2. The other issue is the reimbursement that was made to Commissioner Pope-Ludlam for air fair which had already been charged to the Agency credit card and the Committee is requesting payment in the amount of $960 so that the records can be cleared up. ITEM NO. 2 EADIE AND PAYNE COMBINED REPORT The Committee forwarded this item to the Commission with the recommendation to authorize the Redevelopment Agency of the City of San Bernardino to reimburse Eadie and Payne, Certified Public Accountants, l439H 1 l the amount of $2,500 for the Fiscal Year ending June 30, 1988 and the amount of 51,200 for the Fiscal Year ending June 30, 1989 for additional professional auditing services rendered in connection with the preparation of a combined audit report. ITEM NO. 3 LIABILITY INSURANCE The Committee continued this item to August 18, 1988. ITEM NO. 4 VISITORS AND CONVENTION BUREAU The Committee referred this item to the Ways and Means Committee. ITEM NO. 5 NATIONAL DEVELOPMENT COUNCIL CONSULTANT AGREEMENT RENTAL Mr. Scott Rodde gave a presentation of the services rendered to government agencies by the National Development Council. The Committee recommended the renewal of Economic Development Consultant Agreement of the National Development Council and adoption of Resolution authorizing and directing the execution of a contract for services. The Committee directed that staff prepare a resource list of these agencies that the Agency does business with for staff's availability and information. ITEM NO. 6 UQ FOR SPECIAL AND BOND COUNSEL Dennis Barlow, Senior Assistant City Attorney made his presentation to the Committee. The Committee recommended that this item be forwarded to the Commission for approval. ITEM NO. 7 SElP - TRICOM PARTNERS The Committee forwarded this item to the Commission with the recommendation that the Commission authorize the Certificates of Completion for Tricom Partner's buildings on Cooley Avenue in Southeast Industrial Park. ITEM NO. 8 PROPER RELATIONSHIP OF PACs/CACs TO THE COMMISSION AND COUNCIL Mr. David Lechuga made his presentation to the Committee and Mr. Lechuga asked questions of the Committee. The Committee recommended that Dennis Barlow prepare an amendment to resolution for the Commission to adopt to include flexibility for the CAC/PAC regarding planning services. ITEM NO. 9 RUSS HATLE The Committee recommended that this item be continued for two weeks. The Committee commended Mr. John Wood, Development Specialist for an outstanding job on this report. 1439H 2 ITEM NO. 10 MENTAL HEALTH BUILDING, 101 SOUTH lOr STREET - UPTOWN The Committee directed staff to contact a broker and have the building placed on a multiple listing for sale. ITEM NO. 11 INTERNAL INVESTIGATION Dennis Barlow, stated that there wasn't anything new to report. The Committee directed that this item be left on the agenda for the next two meetings. CLOSED SESSION Pursuant to Government Code Section 54956.8, the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino convened in closed session in order to discuss several items for negotiation of real property. Pursuant to Government Code Section 54956.9(c), the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino convened in closed session to discuss possible litigation. ADJOURNED MEETING At 8:00 p.m. the Redevelopment Committee adjourned. APPROVED: ~~ Esther Estrada, Chairman Redevelopment Committee 1439H 3 ------- ------- MEETING SUMMARY T1U CITY REDEVELOPMENT PR.OJ'ECl' AREA CITIZENS ADVISORY COMMITTEE Location: January 28, 1988 3:00 P.M. Tri City Corporate Centre COMMITTEE MEMBERS PRESENT COMMITTEE MEMBERS ABSENT Merle Cornelison Richard Gardner, Chairman Michael Cohn STAFF PRESENT Jill Hammer, Transcribing Secretary - RDA John Wood, Development Specialist - RDA GUEST PRESENT Roderick Q. MacDonald, Vice President, Director of Construction, Tri City Corporate Centre * Excused Absence ------- - ----- -- ---------- - ----- ----- Due to the fact that a quorum was not in attendance at this meeting, the following narrative indicates only the discussion which took place at the meeting date and time. Discussion began at 3:25 p.m. Tri City Corporate Centre Mr. MacDonald reported that the Waterman Avenue median is now under construction. The landscaping should be completed by mid-February, 1988. An irrigation system will be installed, as well as an electrical system which will enable lighting of the trees at night and at special times of the year, e.g., Christmas. Mr. Wood asked what types of trees would be planted in the median. Mr. MacDonald stated that evergreen trees will be planted. The other landscaping will include grass and ground cover with bushes and trees growing out of it. The intent was for the landscaping to create a three dimensional effect. There will also be some areas of decorative cobblestone within the median. 3 Mr. MacDonald reported that the materials are being purchased for the buildings to surround the proposed central water feature. The median on Hospitality Lane is currently being modified to provide for left turn access into the area where the 6-story building and accompanying lakeside buildings will be developed. The proposed lake will add a great deal aesthetically to the area, and will feature two waterfalls 2-3 feet in height. Next to the lake a "People Plaza" will be created, i.e. a large architectural expanse of f1atwork. Shade structures will be included. Cars will be allowed to drive in this area as well. The area has been styled like an old Italian plaza where cars and people co-ming1e in the same area. It will be named the "Auto Court." The new Ice Storage Program developed by the Southern California Edison Co. will be used to cool the 6-story building. The program uses a huge ice machine to make ice during off hours. The cooling mechanism will be released during the peak hours, thereby reducing significantly the amount of electricity that would otherwise be consumed. The Holiday Inn escrow is scheduled to close in May, 1988. The one acre La Petite Academy Day Care Center site has been approved by the City of San Bernardino. Construction should begin within the next 30 days, with the target opening date set for September, 1988. Mr. Cornelison asked whether finished buildings would subsequently be sold. Mr. MacDonald explained that thus far all buildings have remained under the ownership of the Tri City Corporate Centre. He explained that eventually the buildings will be sold because the Tri City Corporate Centre organization is funded by two limited partnerships. The CC&Rs for the area help to maintain architectural control. Mr. Gardner asked if any Los Angeles-based firms are interested in relocating to this area of San Bernardino. Mr. MacDonald said not at the present time. Marketing to Los Angeles and Orange County based firms will be necessary to maintain the growth of the Tri City area. Mr. MacDonald reported that the Tri City Fire Station is under construction. A tentative completion date has been set for July, 1988. Zone Text Amendment Mr. MacDonald reported that the Planning Commission has authorized an outside consultant to conduct a new traffic study for the Tri City Development Area. The traffic study will encompass the Tri City Corporate Centre, the undeveloped 75 acres to the east and a few of the undeveloped parcels to the west. -2- Art in Public Places Program Mr. MacDonald reported that the City of San Bernardino has agreed to take on loan, for a minimum of six months, a major art piece that Tri City is purchasing for one of its next garden office buildings. The City wants to place this sculpture next to the Maruko Hotel. It is hoped that this effort will tie together the redevelopment efforts for both the downtown and Trl City areas. The Art in Public Places Program is of interest to both redevelopment areas. Mr. MacDonald noted that five other art pieces are currently located at the Tri City Corporate Centre. Tri City's financial commitment to this program is in the range of il-2 million. The eventual goal is to provide visitors with a self-guided tour of all the art pieces included in the program. Membership: Tri City Citizens Advisory Committee Discussion ensued concerning the purpose of the Committee, i.e. broadening the base of community support for the redevelopment process in the Tri City Redevelopment Project Area. Committee members present deciued they wanted the Committee to continue meeting on a regular basis. Suggestions for membership in the Tri City Citizens Advisory Committee were presented. It was decided that the Councilpersons for the Tri City Redevelopment Project Area would be contacted for their suggestions as to potential new CAC members. Tri City CAC Bylaws Committee members requested that bylaws be drafted for review, in the format of the sample provided in the agenda materials. The draft will be available for review and approval at the next Committee meeting. Joint Public Hearing: Role of PACs/CACs The Joint Public Hearing scheduled for March 21, 1988 was announced. The purpose of the hearing is to decide the proper roles of the PACs/CACs. Respectfully submitted, 9 U-L, '; 11 . '7d~nt- n LL-tJ 0'ill M. Hammer Transcribing Secretary jmh:3242K -3- REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: TRICOM PARTNERS DATE: AUGUST 8, 1988 Synopsis of Previous Commission/Council Action: 0/79 Resolution 4000 approved DDA with VTN Consolidated and Eastern Pacific. 03/80 Resolution 4042 approved First Amendment to DDA changing the square footage of the development. 11/81 Resolution 4257 approved Second Amendment changing developer's name to Tri-City Industrial Park, Ltd. 12/86 Resolution 4966 approved Third Amendment, substituting Tri-Com Partners as the redeveloper. (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to receive and file Certificates of Completion for Tricom Partners on Cooley Avenue in the Southeast Industrial Park. I!~A ~ Si~7ture Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: 1st FUNDING REQUIREMENTS: N/A Project: SEIP Date: August 15, 1988 Council Notes: 4240G:ND:sm Agenda Item No. t.j Synopsis Continued 03/88 Motion to receive and file Certificates of Compliance for two buildings, occupied by David C. Greenbaum Company and Carrier Corporation. 5/88 Resolution 5113 approval Fourth Amendment to the DDA, establishing that the developer's landscaping plans comply with the requirements of the DDA. S T .. F F R E P 0 R T Staff and the Redevelopment Committee recommend that the Commission receive and file Certificates of Completion for buildings 2, 3, 5, and 6 of the Tricom Partners Project. . BACKGROUND Tricom Partners has completed the final four of six buildings under the DDA with the Redevelopment Agency. Two of the buildings (occupied by David C. Greenbaum Company and Carrier Corporation respectively) received Certificates of Compliance in March, 1988. The following table summarizes the six buildings: Square Footage Completion Date Value Annual Tax Increment One-Time City Fees Annual Utility Tax Jobs 153,095 88-05-01 $5,000,000 $50,000 $100,000 $18,371 131 CERTIFICATE OF COMPLETION The Redevelopment Agency of the City of San Bernardino hereby certifies as follows: Section 1. The improvements required to be constructed in accordance with that certain Disposition and Joint Development Agreement dated October 19. 1979 (I'Agreement"). by and between the Redevelopment Agency of the City of San Berhardino. and VTN Consolidated. Inc and Eastern Pacific Financial Group and amended by Third Amendment to the Disposition and Joint Development Agreement dated February 3. 1987 (lithe Amendment") between the Redevelopment Agency of the City of San Bernardino and Tri-Com Partners (IIRedeve1oper"). have been completed in accordance with the provisions of the Agreement. Section 2. This Certificate of Completion shall constitute a conclusive determination of satisfaction of the agreements and covenants in said Agreement with respect to the obligations of the Redeveloper. and its successors and assigns. to construct the improvements, and the dates for the beginning and completion thereof. Section 3. The real property to which this Certificate of Completion pertains is that certain real property located in the City of San Bernardino. County of San Bernardino, State of California, more particularly described as: See attached Exhibit "A" Section 4. Nothing contained herein shall be deemed to release any obligations contained in any grant deed or deed of trust given in connection with this transaction. including. without limitation, covenants running with the land and ~ayment obligations. DATED AND ISSUED THIS day of ~, 1988. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BY: CHAIRMAN ACTING SECRETARY " 00061 EXHIBIT "A" Legal Descript10n APN No: 281-031-66 Parcels 2, 3, 5, and 6 of Parcel Map Number 10513, City of San Bernardino, County of San Bernardino, State of Ca~ifornia, as per map recorded in Book 120, Pages 12 and 13 of Parcel Maps, in the Office of the County Recorder of said County. ,. .> 4174G -~~~-- ~~--- \ I, '. ,1~ z 1, .. =1' : 11 : __~' .. I ~~_I : U- _ ------ lU : ! iL- J' Y f= I r= J"'~ j : ~-~ 'I I ~;;j.. J ~ \\ i I m..... ~. ~ 011I - '>> :" I ,~= J.: ~ . , ., ] ~ ~ ~ J, - _-3mT::III! ' HEDDA .,..., r-- FOri I ,~ ' ; ; - ~ =~-- I . ,~- -, I ~ ; ! .. . ~l-- I ~ ~ I =~~ I ~ I -~ I ='" ,--' I ~= =:- I ; - ~ ==:: I --- t z -~ ~I .... -~ " ,_,'" I ::: ~~ .~~! _ ~ .. \n ~ w r= ~ \ \ ~ 1'-= - ='" - !.' "" ~ _ "I ~ G 1'1 '<(::;,~ .,.,,:: ~ .- I' ... =: t:l .. :, I . .I". ----- r.[,j - __ u:' ~ i I' 'I .' --L~, ~}t!-- li~ [ I . 0: r;;j: {?, W' , ~::~ -- ~ . II. i' i ~!.. /! . ,,' f- ! -l'~ -C) -: c~ t,r ~ _~ I: r ___~ I ------- . ___ i -11 ~.- IAI~_"OAD ~ __!!!QH' ---~, J \~(~~ ~ ~i ~ . At.. ~ ;. ~ ' __4 ~ ~._-~) ~ ~ ). ~ "> ~ ~ -_lJ c~:> rJ) - -I m -c r- )> Z 'R NWNC:Y-RBQUEST FOR ,CO....SION/C()WtCL ACTION From: James Robbins, Acting Exec Director Subject: MR. HARRY JACKS, PRESIDENT OF PROGRESSIVE MORTGAGE, REQUESTS A HEARING BEFORE THE COMMUNITY DEVELOPMENT COMMISSION REGARDING THE CONVERSION ON HIS BEAUTIFICATION LOAN INTO A GRANT. r ,t: Redevelopment Agency August 8, 1988 L._.e: Synopsis of Previous Commission/Council action: July 18, 1988 - Redevelopment Committee was presented, by Mr. Harry Jacks, his request to convert his beautification loan into a grant. The Redevelopment Committee denied his request. - Communtiy Development Commission continued the item until August 1, 1 988. March 10, 1988 August 1, 1988 - Community Development Commission continued the item until August 1 5, 1 988 Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION) Move to deny Mr. Harry Jack's, President of Progressive Mortgage, request that his beautification loan be converted into a grant. ( ,I Contact person: James Robbi ns, Acti"9 Executi ve Di rector Phone: 383-5081 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: $N/A Project: NW No adverse I mpact on City: Date: August 15. 1988 Council Notes: Agenda Item No. 5 REDEVELOPMENT AGENMf -REQUEST FOR Co.w"''1IQN/COUNCIL ACTION STAFF REPORT Attached is a letter from Mr. Harry Jack. President of Progressive Mortgage. dated June 23. 1988 remitting to the Redevelopment Agency the amount of $188.71 representing a one month payment on his beautification loan. Also attached to the June 23. 1988 letter received from Mr. Jacks. was a May 18. 1988 letter addressed to Mayor Hilcox requesting a hearing before the Community Development Commission regarding the conversion of his beautification loan into a grant. Mr. Jacks beautification loan is delinquent in the amount of $1.509.68 for the period November 25. 1987 through June 25. 1988. The attached letters from the Redevelopment Agency. the latest letter dated June 21. 1988 from Dennis Barlow. have requested that Mr. Jacks bring his delinquent loan payments in the amount of $1.509.68 current. On March 10. 1988. at the Redevelopment Committee Meeting. Mr. Jacks requested that his beautification loan be converted to a grant. The Redevelopment Committee denied his request and Chairperson Estrada informed My. Jacks that he had the right to appeal the Redevelopment Committee's decision to the Community Development Commission. Mr. Jacks is now requesting such an appeal. (-- The attached background information also includes the June 23. 1988 and May 18. 1988 letters from Mr. Jacks. a March 9. 1988 memorandum outlining the events from Dennis Barlow. and the Redevelopment Committee Agenda item dated February 17. 1988. and subsequent minutes. containing information on the earlier beautification grant program. 0879A ..~ -.... ~ <:; Q' -oJ ~-. ~\.' %.'<~ ~ . '.;. ~. ~ ;,.A."'-' ~ .~ / B._DEVELOPMENT AGEI'~Y OF mE CITY OF SAN BERNARDINO, CALIFORNIA GLENDA SAUL EXEClmVF. DIRECTOR July 14, 1988 Mr. Barry Jacks Progressive Mortgage Corporation 1256 West Baseline Street San Bernardino, CA 92411 Certified Mail Re: Beautification Loan Dear Mr. Jacks: ( Thank you for your letter of July 11, 1988. Your beautification loan appeal request has already been placed on the Community Development Commission Agenda for consideration at the scheduled 11:00 A.M., July 18. 1988..eting. At the July 18, 1988 aeeting, staff will request that your item be continued until the next scheduled Co~unity Developaent Commission meeting on August 1, 1988 at 11:00 A.M. If you have any questions, please do not hesitate to contact Be. Sincerely, ri~::lQ8~ Acting Executive Director cc: Mayor Esther Estrada 0881A Jll: bl CITY HALL · 300 NORTH "D" STREET . SAN BERNARDINO . CALIFORNIA 92418 . PHONE: (714) 384-5081 TELEX: 6711291 RDEV UW CORP. 11 mortgage Lending/Brokerage Fir.. '. 11,1988 3ames E. Robbins Acting Executive Director Redevelopment Agency 300 North "0" street San Bernardino, Ca. 92418 RE: Beautification Loan Dear Mr. Robbins: I am in receipt of your letter dated July 6, 1988. I regret to inform you that Mr. Jacks will be out of town and unable to attend the Community Development Meeting schedule for July 18, 1988. Please reschedule and inform our office as soon as possible. ( ltl& OJ/At File/ Beauty 3 ROUTING JfL! ME BL LV GC .) ~ L( 1"- :l CC,v lli fiv--/I - ~ l~~/ ROUTE c~_ 1256 W BASELINE STREET SAN BERNARDINO. CA 92411 (714) 381-643 RE~EVELOPMffiNTAGENLi OF mE ~ OF SAN BERNARDINO, CALIFORNIA GLENDA SAUL EXEctTI1VE DIRECTOR July 6, 1988 Mr. Harry Jacks Progressive Mortgage Corporation 1256 West Baseline Street San Bernardino, CA 92411 Certified Mail Re: Beautification Loan Dear Mr. Jacks: In response to your May 18, 1988 letter requesting an appeal before the Community Development Commission, your beautification loan item viII be placed on the July 18, 1988 Community Development Commission Agenda. The Commission 1Beeting will begin at 11:00 A.M. on July 18, 1988. (' If you have any questions, or if the July 18, 1988 Community Development Commission meeting is inconvenient for you to attend, please do not hesitate to contact me. Sincerely, t.~b:~ Acting Executive Director cc: Mayor Esther Estrada 088a J'R:bl I I I i I ! CITY HALL . 300 NORTH uD" STREET . SAN BERNARDINO . CALIFORNIA 92418 . PHONE: (714) 384-5081 TELEX: 6711291 RDEV UW To RDA COMMITTEE nnl:MUHANUUM . "'.. . "'. ~""I" Subject Progressive Mortgage From DBNNI SA. BARLOW Sr.Asst.City Atty Date March 9, 1988 r-.tJproved Date As directed by the Committee, I met with Mr. Barry Jacks, the President of Progressive Mortgage on Monday, March 7, 1988. Also present in the aeeting were Glenda Saul, John Boeger and ROU~N~ Ezell James. Pursuant to Mr. Jacks' concern expressed before the CQmmittee, Sandy Lowder was not in attendance at the OS. meeting although I understand that Mr. Jacks and Sandy met on IL March 1, at Mr. Jacks' request. JH ~ ~. Ml ~ The application for a beautification Cjlrant from Progressive IL ~ Mortgage was signed on January 15, 1986. Mr. Jacks contends LV ~ that grant applications received after his were funded under GC _ the grant program, however, we have not been able to ~CTO ~~_ substantiate that claim from the file. The records indicated ~_ that when the subject application was received there remained ~ only $52 in the fund for projects within redevelopment project ~ areas. Mr. Jacks acknowle~ges that fact but contends that " ~ projects for which funds had previously been allocated were OkIQ.;;::;;:;7' subsequently revoked which resulted in sufficient funds being ROUllCOPY_ available. ~~Q ~ On January 24, 1986, Mr. Jacks was notified by letter that no ~d..l kJ funds were available and that the program was being revised to ~-6 provide for loans rather than grants. This change was '0 subsequently approved by the Commission. Apparently, the reason for the revision in the program was that it was concluded that grants over $999 were subject to the prevailing wage rate requirement of the Davis-Bacon Act, which would result in destroying the benefits ~f the program. r' Despite these changes, Mr. Jacks executed the note and deed of trust in March 1986. (As a separate issue, Mr. Jacks claims that the documents were illegally notarized 1-1/2 days prior to his executing them. Although this is supported by notations on the file documents, the subject employee is no longer with the Agency.) Mr. Jacks contends that the only reason he agreed to accept the loan was because he was promised verbally by both Ken Henderson and Sandy Lowder that the loan would be reviewed for possible conversion to a grant. Aside from the fact that agreements affecting real property may not be made verbally, both Ken and Sandy have denied making such representations. In any event, Mr. Jacks accepted the loan and made generally regular payments. On prior occasions the issues raised by Mr. Jacks have been presented to the Agency and have been responded to, following which payments were resumed. PRIDE "" ~ IN PROGRESS ~ "._ J J (' RDA Committee Marcb 9, 1988 Page Two Althougb Mr. Jacks claims some vested rigbt in tbe grant program since bis application was received wbile tbe program was still apparently in effect, I find no authority to support that contention. Certainly, the mere filing of an application gives .no rights to the applicant in the sought-after funds. Secondly, and most importantly, any .rights. which Mr. Jacks may bave obtained were waived by bis acceptance of a loan instead of a grant. It must be remembered that Mr. Jacks is not an unsophisticated individual. Be works on a daily basis witb loans and other real estate matters. Be must be beld to a somewhat bigher standard than the average citizen with respect to documents relating to real property. Be should be aware that deeds of trust cannot be amended verbally and of the very serious nature of entering into these written agreements. Mr. Jacks' final argument is that it is illegal to restrict loan funds secured by a Deed of Trust. Essentially, he contends that if a government agency is loaning funds subject to a trust deed that the individual should be able to use the funds for any use he wants. Be points to tbe inability of banks to restrict the funds they loan. Be fails to understand that banks are under different restrictions than are public agencies in these matters. Public agencies are not general lenders but make loans under various programs to fulfill some social end. There is no illegality in restricting the use of such loan funds whether or not secured by a Deed of Trust. In conclusion, it appears that Mr. Jacks may have been confused in bis various applications to Community Development, EDC and the Agency as to what transpired with respect to each. Bowever, I find nothing in the record or in the recollection of those involved which would grant Progressive Mortgage rights in a grant program which was determined to be contrary to law. Mr. Jacks has indicated that all he has sought is a review and decision .up or downw by the Commission. Certainly, that could be done but essentially it would be a futile act since the Commission cannot provide the relief sought. Mr. Jacks accepted the loan with full knowledge of its legal requirements and ramifications. Be must be required to meet its terms as any other 1 an recipient. BARLOW City Attorney DAB: cm .. .. ~.. --, - CORP" .fl mortgage Lp"ditlgl13rokerage Finn City of S6n B~rnardino City Attorney Office 300 North "0" Str.et San Bernardino, Ca. 92418 RE: Beautification Loan Atten: Dennis A. Barlow Sr. Asst. City Attorney - T"lO ! --- "~ -.4..;::: ____ Dear Mr. Barlow: -- - OR/G. :EJ;;; ICOUTl c:oP.rZ \ As discuSS.d in our conv.rsation this day I am enclosing our check herewith in the amount of S188.71. Pl~ase note as previously stated this payment is being made under duress. "( On several occasicn as President of Progressive Mortgage Corp. I have reQuested to Glenda Saul, Sandy Lawder,K~n Henderson and Mayor Wi 1 coy. to tal~e th is mat ter before the Counc i 1. This request has been both verbal in RDA meetings and written to COC- Kenneth Henderson also RDA- Glenda Saul. It appear the only communication that we have receive has totally disregarded our reQuest and makes thr~ats to foreclosure on our office. We have stated that our payments are not delinquent, but rather we have refused to ma~e payments until the Council hear cur concern. Sincerely, .r.-J " --1 ~\j - c/~ Ha.-ry L. Jac~s P!""f?Sld5'i1t CC: f":ayo, Wilcox Jlm RObins. Acting Director RDA Ken~eth Henoerson. Dlrector CDC Esther Estrada Valerle Pope-Ludlam HLJ/at llel Beauty 2 . .. . r -- -- - - -..--..-. -...,...- ............r. P~.~~- L. ..~.':~ 'A.,,,e;' A". - Eo......... _... -. CA.....,. 1891 GENERAL ACCOUNT 1256 W. BASELINE ST. 714-181~1 8AN BERNARDINO. CA 12411 JtJRE 23 'lD88 .1S78/3Z2i ,. EXAC'J'LY ................... I 88 DOtS 7 T ,,:rs r ~, DOLLARS ,188.71 10 THE ORDeR OF SAN BERRARDINO RBDEVELOPMBH'l' AGENCY . "00 IS Ii I" e_: 3 ~ ~ ~S 5 181-: _...... c.-.&c. ~t"'t&.. "'oollenm MOIITGAGE CORP. use W. BASEL/NE ST. aAN BERNARD/NO. CA 12411 DETACH AND NETAIN THIS STATEMENT ...... A'"'ACWoCD c.ccK . .. ......&N't' OP ".... ~ ~. · ...,.,. _CT __ ...,.,..., .. -...... NO IIKC&Pr -.. I DATf ~.~ AMaUNT ~ ACCT. NO. AIG.WT 23/88 BEAUTIPICATION LOAN PAYMBlft" $188.71 -.uu POIUI wvc.a v.. .u : . S~nBernardino RDA (": IAIINUIGS DEDUCTIONS - --- TOTAL TOTAL -- 11&. __AT IAIINIGS '.Lc;A.. --- &D.L ~A'II IlIDUCTtONS Nrf"AV ........ 1IA1I -~ U". 1IC. TAIl _Tal - ...,. , .....,....-_.-.._...._.~-_..................... ........... ........ .. '. L: CORP. .fl mortgage LflHdingl13rokerage Firm May 18,1988 Mayor Evelyn WilcoK 300 North "0" Street San Sernardino, Ca. 92418 Re: Seautification Loan Dear Mayor Wilcox, We are requesting that this item be placed on the next Council agenda. (June 6, 1988> Initially, the loan package submitted to the Economic Development Council and the Redevelopment Agency contained a request for rehab, r how.ver,on December 9, 1985 at the request of the redevelopment ~;ency I submitted an application for the Beautification Grant. tt the time of this request the funds available were in the form of grant. Shortly, thereafter I was informed that my application was ~uspended due to changes 1n the grant program. On January 15, 1966, Progressive Mortgage Corporation was asy.ed to re-apply for the Beautification funds under terms and gUIdelines of ~he revised regulations. This was done under great protest. 1) The Change from a grant to a loan. 2) Having verified the funds were avallable under the grant program. 3) Maving to complete all work with out of pocket funds prier to receiving any funds from the agency; while under the restrictions place by the Economic Development Council their funds being soley for salaries, furniture and equipment. . " Page E In Conclusion, I feel justified in seeking to have the now .~iting Beautification Loan revised to a grant; also I am reQuesting all funds including interest s.id be return to Progressive Mort;a;e Corporation. I~ is unfortunate that Progressive Mortgage Corporation as a small locally ownedo.!"inority business has been victimized to this e)(tent. Please give this matter your immediate attention. Sincerely Yours, c:rr- <. ~J-c./~ Harry L. Jacks President HJaat -. CC: Robert L. Goodrich, Esq. ( 'C BERNARDINO 3DO NORTH "D-ITfIIET.1AN IERNMDlNO. CAUFOftNIA 12411 June 21, 1988 JAMES F. PENMAN CITY ATTOIIINIY (714' .....S Mr. Harry Jacks Progressive Mortgage Corporation 1256 West Baseline street San Bernardino, CA 92411 Re: Beautification Loan Dear Mr. Jacks: I am informed by the Redevelopment Agency of the City of San Bernardino that you are seriously delinquent in your payments on 'the above loan. ( Unless we receive Sl,509.68 within ten (10) days from the date of 'this letter, we will have no other choice but to institute foreclosure proceedings which may result in loss of your property and in additional costs to you. If you have any questions on this matter, please feel free to contact either myself or the Redevelopment Agency. Very truly yours, . BARLOW City Attorney , "lRDE IN ~RfSS ~ u. k . ~~'" ( .9-,( :-c ROUTING Gs/ - ;;. :if ME I BL . . LV ..::. o..J.. GC Cr /0 J _!(~.li'/ -. DAB: em cc: Glenda Saul, Executive Director Redevelopment Agency Esther Estrada ~ ~-~~ RF"EVELOPMENT AGENry OF THE L1TY OF SAN BERNARDINO, CALIFORNIA GLENDA SAUL F.XF.ClrnvF. fIIRECTOR April 27, 1988 CEllTIFIED MAIL Mr. Barry Jaclts Prolresaive Hortaaae 1256 w. "ae1ine San Bernardino, CA 92411 Ie: Beautification Loan Proareasive Hortlaae - Northwest Dear Mr. Jaclts: Your beautification loan froa the Redevelopment Aaen~y is delinquent in the aaount of $1,320.97. This represents seven 80nths of payaentl fro. October 25, 1987 to April 25, 1988. If payaents are not brousht current by May 28, 1988, the Community Deve10paent Coaadaaion ..y elect to forec10ae. ( A letter of delinquency wa. aent to you on January 5, 1988 and aaain on February 11, 1988. The February 11, 1988 letter also invited you to address the Redevelopment Asency Co..ittee on February 18, 1988. You did address the Committee on February 11, 1988 and on March 10, 1988. At the March 10, 1988 Redevelopment Asency Committee aeetins, Chairperson Estrada informed you that the Committee had denied your request to convert the beautification loan into a srant and Chairperson Estrada also informed you that you had the risht to appeal the Committee's decision before the Community Development Co..t8sion in writins. You atated at the aettins that you did not wiah to chose this alternative. " ., Please reait your payaent in the aaount of $1,320.97 for the period October 25, 1987 throuSh April 25, 1988. If you have any questions, p1eaae do not hesitate to call. Sincerely, ~~~,~..,...e~ Sandy Lowder Deputy Director SL:b1s0847A CC: Mayor lU)A COlmittee Valerie Pope-Ludla. John Hoeser - File "~~r.L1a4..th~~i1e Dennia Barlow CITY HALL · 300 NORTH un" STREET . SAN BERNARDINO . CALIFORNIA 92418 . PHONE: (714) 384-5081 TELEX: 6711291 RDEV UW ~ TIME: PUCE: I.OLL CALL: ITEM NO. 1 IuMU'I'd UDEVELOPKIHT COMKITTD 2:00 p.a., Thuraday, Karch 10, 1988 Iedeve10paeut Alency Conference I.oom eo..1ttee Meaber Esther Eatrada, Chairaanj Co.aittee H..ber Jess Floresj Committee Member Michael Maudaleyj Phil Arvizo, Executive Assistant to Councilj Crais A. Graves, City Treaaurerj Stephen P. Deitsch, from Sabo and Deitsch law firmj Dennis A. Barlow, Senior Assistant City Attorneyj Glenda Saul, Executive Director, I.edevelopaent Alencyj Sandra A. Lowder, Deputy Director, ledevelopaent Alencyj J. Lorraine Velarde, Manager, Adminiatrative Services, Iledevelopaent Alencyj John Hoeger, Manager, Development Divisionj Ilosalie Morales, Ilecordina Secretary. CLOSED SESSION Chairaan Estrada ..de a IIOtion and vas unanimously carried that the ledevelop.ent Committee recess to a cloaed aeasion purauant to Goveroaent Code Section 54956.8, in order to discusa with its nesotiator the teras and conditions of an agreeaent with llancon. f ITEM NO.2. CONCERNS OF THE NORTHWEST PAC-DAVID LECHUGA LETTER Hr. Lechusa discussed in detail the contents of his letter with the Committe. After some discussion Hember Estrada suggested to the Committee that they recommend to the Commission that a public hearing be held and that the PAC and all other city CAC's be invited to attend. The purpose of the hearing would be to jointly deteraine the roles and duties of all parties. (- ITEM NO.3. GOLF COUllS! REIMBUllSEHENT REQUEST .1-215. UNDERCllOSSING Hr. Bickler atated that he would like to review the figures with his auperintendent. Staff is to incorporate all of the data after nesotiations. The item is recommended to the full commission. ITEM NO.4. BIlOWN ACT STANDARD POLICY - COHMITTEE MEETING Committee recommended that the Brown Act Policy be forwsrded to the Commission Members for their review and comments. This item is to be brought back to the Committee with Commission Members comments at the next Committee Meeting of March 24, 1988. 1099B c~ 1 ~-------- , .. wnMC CITIZENS ADVISOllY COMMITTEE (CAC) APPOINTMENTS ~,~. " .-~~..,.. ,...../,.,...- .;;.!t-.: '.~~~r' .. ,:,'iJft~~ ' 1M_oded tbe appoint.ent of Mra. Maria McNulty and Mr. .' }~.. _ ~'f~ .,V- I. ..r.. 00 the Uptown CAC repreaeutina Sub Ar.a lOA.. ''>.. ;..," " ~ t"'- : ,:~;~..,; nco..oded the appointaent of Mr. Carl OldeDkaap to _ne ~p~l ~..~... ftCtI.II CAC repreaenUq Sub Area lOB" ;~".'~" .- t.,,:- ~/_.. ,. '':!,,'":. ,~'C 'f!t..; '.n.. ~Yed to forvard the Redevelopment Alency of the City of San ~'.:.} ; ..,..,..Uao AliDa of Notea Receivable Report for the aonth of February ,~~~" JIll CO the CoDiadon as a receive and file item. . .,.~:?;J; ~ ," !:::~:~.. our ItEM _eo_..:.... . AGING OF NOTES llEPOllT FOil THE MONTH OF FEBIUWlY 1988 , *. ladow, Senior batatant City Attorney _de hia pr.aentation on a ...randua he prepared for the Coaaittee elated March 9, 1988 reaardina 1Ir. Harry Jacka of Progreaai ve Mortgase. Mr. Badow atated that Mr. Jacka vaa requeatins that the Coaaittee rav!ew and _ke a yea or no deciaion aa to whether they will approve a cODveraion of Mr. Jacka loan to a grant. Mr. Barlow atated that there were no aoniea to approve a grant for Mr. Jacka. Mr. Jacka baa a loan and haa to repay it back. Mr. Jacka ia aeekillg a grant which would baaicelly forgive the loan. 1f;~~~' .... ' .....,1" 7:;".'-:- " t ( At thia tiae Mr. Jacka vaa aaked to cOIle illto the aeetina. At that tiae Chairperaoll Eatrada inforaed Mr. Jacks that the Committee dellied hia requeat for a grant. Chairpersoll Estrada stated that Mr. Jacks had the right to appeal this before the Commiasioll alld he would have to do ao in vritilll. ITEM MO. 7. G1lEENLUF DEVELOPMENT InforaatlO1l Itea I'1'EM NO.8. VOllDOOK 3 'lhla ltea vaa continued. ITEM RO. 9. ITEM WITHDRAWN ITEM NO. 10. PEe. BUILDING NO. 2 - INSURANCE The Committee 11l8tructed ataff to apply for the liability coverage on the PEC Bldg. No. 2 located at 1535 West Highland Avenue with Scotadale Insurance Company for a annual premium of $2,242.42 as quoted by Bolton & Co. ill their March 4, 1988 letter and to prepare the nece.aary update alld request for reimbursement to the Five Cities J'PA. 2 1099B u f ( r--~.- - ~t!L- 3/7/i-g MINUTES REDEVELOPMENT COMMITTEE Time: 4:45 p.... Thursday. February 18. 1988 Redevelopment Agency Conference Room Committee Member Esther Estrada, Chairman; to.mtttee Member Jess Flores; Committee Member "ichael Maudsley; Glenda Saul. Executive Dtrector Redevelopment Agency; Sandy Lowder. Deputy Director Redevelopment Agency; John Hoeger, Manager. Development Divtston; Lorraine Velarde. Manager. Admintstrattve Servtces; Chrtsttne Young of Sabo & Dettsh, Agency Counsel; Dennts Barlow, Sentor Asststant Ctty Attorney; Phtl Arvtzo, Counctl Executtve Asststant; Richard Bennecke. Mayor'S Admintstrattve Asststant; Youn Ktm, Ctvtl Engtneertng Assoctate; Amador Estevene, Engtneertng Destgn Coordtnator; Barbara Ltndseth. Accounttng Manager; Darltne Howell. Recordtng Secretary. Place: Ro 11 Ca 11 : ITEM 1: SECURITY PACIFIC FISCAL AGENT AGREEMENT Barbara Ltndseth dtscussed the dtfficulty tn compartng banks' annual admtntstrattve fees due to the dtfference tn servtces offered. She tndtcated that Securtty Pactftc's actual tncrease ts about 121. Christine Young. based upon a cross-sectton of various banks. tndicated Securtty Pactftc's tncrease was tn the normal range and not a bad tncrease over that periOd of ttme. The Committee then discussed the legal costs of bond counsel involved in shtfting from one bank to another, the posstbility of going to an out-of-state bank, the drafting of a new Ftscal Agent Agreement, and the need to go through outstanding bond issues for substitution of successor fiscal agents. On the basis that the ctty gtves Security Pactftc substantial bustness. and that there ts sttll ttme between now and the clostng of the bonds on March 15 and 16, 1988, the Commtttee recommended that an attempt be made to negottate a lower rate wtth Securtty Pactftc. ITEM 2: FIRST INTERSTATE LOAN Commtttee recommended that the resolutton authorizing the borrowtng of $4.3 mtllton from Ftrst Interstate Bank to fund admtntstrat've expenses be forwarded to the Commtsston for adoptton. ITEM 4: PEC. BUILDING NO. 2 - INSURANCE Commtttee 'nstructed staff to prepare a letter tn f'nal form for stgnature by Chatrman Estrada and deltver tmmediately to Nat Stmon. Chatrman of Ftve CUies JPA. 1121R 2/24/88 z . - ITEM 14: STATUS Rr "RT, UDAG GRANT APPLICATION "TI CLUB PROJECT" The Committee recommended "The Club Project" staff report be forwarded to the Commission to receive and file. ITEM 12: PROGRESSIVE MORTGAGE 4. Harry Jacks appeared before the Committee. He denied that he had received a letter adv'sing that the matter to be discussed this date was payment delinquency, and stated he believed he was present to discuss his request for review of the beautification loan. The Committee requested that policy In the future require letters requesting the presence of a party before the Committee to discuss delinquency be sent certified, return receipt requested. Chair..n Estrada requested Sandy Lowder provide Mr. Jacks with a copy of the complete package of this Item. She also requested that a copy of the letter In question from Mr. Wood be hand-delivered to Mr. Jacks the next day: The Committee requested Mr. Jacks ..et with Ezell James, John Hoeger, and Dennis Barlow to review the file. Dennis Barlow requested Mr. Jacks provide copies of his documentation for his review. Chairman Estrada advised Mr. Jacks he would be contacted by staff regarding the meeting, and Invited him to appear before the Committee again on March 10, 1988, at 4:00 p.m. to discuss the loan delinquency. The Committee recommended that the notification procedures be revised. ITEM 13: NESTSIDE COMMUNITY DEVELOPMENT CORPORATION (' This corporation has filed bankruptcy, and Its payment of S785/month Is 6 months in arrears. Richard Cole stated that the Bank of Callfornlals Interest In the bu'ld'ng is disputable, and could be set as'de by a Quiet Title action, placing the now second position of CDC In first on the parcel. The Committee requested Dennis Barlow render a legal opinion on this possibility, and the costs Involved. It was noted that Mr. Zimmerman Is the attorney for Nestslde Community Development Corporation, but the corporation Is unable presently to pay him. The Committee moved that this Item be heard at a later date after It has received Dennis Barlow's report. ITEMS 16, 17, 18, & 19. CLOSED SESSION. Motion was made and carried to proceed to conduct a closed session pursuant to Government Code Section 54956.8 to discuss with Committee's negotiator the purchase, sale, exchange or lease of real property and to give 'nstructlons to 'ts negotiator concerning negotiations. It is not presently known when any actions taken in closed sesston may be publtcly announced. APPROVED: ~ 3 1121R 2/24/88 REDEVELOPMENT COMMITTEE AGENDA ITEM TO: REDEVELOPMENT COMMITTEE FROM: GLENDA SAUL, EXECUTIVE DIRECTOR DATE: FEBRUARY 17, 1988 SUBJECT: PROGRESSIVE MORTGAGE RECOMMENDED ACTION: INFORMATION ONLY BACKGROUND: <( This is an informational item for discussion with Harry Jacks of Progressive Mortgage who expects to attend the meeting. His letter is attached along with a copy of an earlier letter from the Agency that explains some of the background on the earlier grant program. ~ .J,uj Glenda Saul Executive Director GS:JH:mv:3580G -------------------------------------------------------------------------------- MEETI NG DATE: RECOMMENDA TI ON: FEBRUARY 18, 1988 /;< ."- /'- " February 4, 198e f Cd 0 81988 lOUTING II b I&. JH M& 11. LY Ie ~/ fI~iQ.~- ~iiit7 __.- ~;;.,... CORP. A mortgage LntdiHg/13rokerage Pirm Kenneth 3. Henderson Community o.velopment 300 N. NO" Street San Sernardino, CA 92418 o.ar Mr. ~ndersonl Pursuant to our .eetin; Wednesday February 3, we are requestin; a review o~ the loans .ade to Pro;re~sive Mort;a;e Corporation, by the Economic Development Council under Sam Henley and the Seauti~ication loan made throu;h the Redevelop.ent A;ency. c( ECONOMIC DEVELOPMENT LOAN 1) Our initial request ~or ~undin; our loan packa;e was submitted to the Economic Development Council and the Redevelopment A;ency ~or Joint ~undin; as a ;rant and loan. Durin; the application process we were ~aced with .any complications. Our Application included a request ~or acquisition, rehab, operating capital and equipment purChases, with the request o~ ~undin; ~or 578,942. In December 1985, we were told that in order to receive the help requested we would have to have title to the property; therefore, we received .15,000.00 ~rom a private . party second at 19% interest and proceeded with the request ~or the balance of the ~undin; ~rom the Economic Development Council and the Redevelopment Agency. After acquiring title it did not seem fe.sible to continue in our 16th Street location while making mortgage payments on a newly acquired facility; therefore, we proceeded to relocate and continue to operate our business with cash on hand. After suppling the additional information requested and amendin; our request to eliminate acquisition; We were informed that our ~undin; request for operation capital and equipment was approved in the amount of 527,314 and the ~undin; would have to be in the form of a loan secured as a second by our newly acquired faCility. Ken Henderson February 4. 1988 Page 2 -PROMISSORY NOTE 1) It wa. later di.covered that the promissory note hold. the pre.ident o~ Progre..ive Mort;a;e per.onally liable ~or all payment. due thereunder. . 2) Whlle the note. bears the date March 7, -1986, Itcall. ~or a due date In which all installment. are due entirely on March 1. 2001. LOAN AGREEMENT RECITAL The recital notarlzed March 7. 1986 bears several ~al.e and .isleadin; statement.. ~ 1) Pro;re..ive Mort;a;e took title to the Ba.eline ~acility December 198~ and relocated it. o~~ice and .ta~~ in 3anuary 1986. (See item 2 o~ Recital) 2) Item 6 of the Recital .peci~ically state. the purpo.e o~ this loan wa. to relocate the principle office to the Ba.eline ~acility. On October 14, 1985 Mr. Henley, then Executive Vice Pre.ident o~ Economic Development Council, reque.ted additional in~ormation and clarification o~ item. contained in our ~unding request. Attached to A copy o~ that October 14, 198~ letter i. a one pAge, 6 Item reply. It i. interesting to note Item 2 o~ .aid attachment, clearly explain. that i~ the principle o~~ice o~ Progre.sive Mortgag. Corporation wa. to remain at the 16th Street location this request ~or operatin; CApital would still be .ade. Item 8 o~ the Recital make. additional re~erence to the relOCAtion ;ivin; the impre.sion that ~und. were loaned ~or the purpo.e o~ .aid relocation. DEFAUL~ AND REMEDIES Section 3, pa;e 5 o~ the agreement .peci~ically .tate. in the event that progre.sive Mortga;e Corporation de~ault. under the rules And regulation o~ the Bankruptcy law that the lender. K.n Hend.r.on F.bru.rv 4. 1988 P.g. 3 i.e. The city of S.n Bern.rdino c.n t.ke po.....ion of sub.t.nti.llv .11 of it. ....t.. Thu. giving the impre..ion th.t .11 property per.on.l .nd re.l c.n Dr ..V b. .eized .t the ~ill of the citV. in the ev.nt Qf . d.f.ult Dr b.nkruptcV. After consid.r.tion of the .bov. .t.t.d i..u... pr...ur. .nd fru.tr.tion. of the .pplic.tion proce..a It i. mv f..ling th.t .11 docum.nt. .igned. i... the lo.n agr..m.nt, the promi..orv note .nd d.ed of tru.t ..curing ..m.a alon. ~ith the net ch.ck .11 b.ing d.t.d M.rch 7. 1986 th.t all documents .ign.d ~.r. .x.cut.d und.r dur.... 0-' I am r.qu..ting a r.vi.ion of the collat.ral u..d to .ecur. our op.rating c.pit.l .nd equipm.nt 10.n to . p.r.on.l gu.r.nt.. bV the pr.sid.nt of Progr.ssiv. Mortgage Corpor.tion. T.rms of the inter.st .nd amortiz.tion to b. n.goti.t.d. REDEVELOPMENT AGENCY BEAUTIFICATION LOAN * Initi.llV' the lo.n p.ck.g. .ubmitt.d to the Economic D.v.lopment Council .nd the R.d.v.lopment Agencv cont.in.d . r.qu.st for r.h.b, how.v.r, on Dec.mber 9. 198~ .t the r.quest of the Red.velopment Ag.ncv I .ubmitt.d an .pplic.tion for the B..utific.tion Gr.nt. At the tim. of this requ..t the funds .v.il.bl. ~.r. in the form of a gr.nt. Shortly, ther.aft.r I was informed that mV .pplic.tion was .uspend.d due to chang.s in the grant program. Copi.s of the.. .pplications are enclOS.d for your r.view. On 3anuarv IS, 1986, Progressive Mortgage Corporation was .sked to re-applv for the B.autification funds under terms and guideline. of the revis.d regulations. This was done under great protest. 1) The change from a grant to a loan. 2) Having verifi.d the funds were .vail.bl. under the grant progr.m. . K.n H.nd.r.on F.bruary 4, 1999 Pag. 4 3) H.ving to comp1.te all work with out o~ pock.t ~und. prior to r.c.iving .ny ~und.'~rom the ag.ncy. while und.r the r..triction. pl.c.d by the Economic D.~.lopm.nt Council th.ir ~und. b.ing .0l.ly ~or ..1.ri.., ~urniture and equipm.nt. In conc1u.ion, I ~e.l Ju.ti~i.d in ..eking to h.ve the now existing B..uti~ication Lo.n r.vi.ed to . grantl .1.0 I am requ..ting all ~und. including int.rest p.id b. r.turn to Progre..ive "ortga;. Corporation. It i. un~ortun.t. thatProgr...iv. "ortgag. Corpor.tion a. . .m.ll loc.lly own.d minority bu.in... ha. b..n victimiz.d to this ..t.nt. Pl.... giv. this m.tt.r your immedi.te att.ntion. (c' Sincer.ly yours, II -- ..J -I f ~'( C7{'. - c/~ H.rry L. J.ck. Presid.nt HJlsdy eCI ".yor Glend. S.ul S.ndy Lowd.r V.l.ri. Pope-LUdlum Rob.rt L. Goodrich, E.q. '~4 ,. :MORANDUM Cu?~ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA OJ No. 111 "-n. ,... December 12, 1986 TO ~SandY Lowder, Manager ~ velopment Dtvtston - Ezell James -RO Ci tizen Advisory Special 1st ~UBJECT PROGRESSIVE MORTGAGE/BEAUTIFICATION GRANT - ce. As per your request, I have revtewed our prevtous Beauttftcatton Grant Program to determine tf Progresstve Mortgage was tnadvertently overlooked for fundtng. As a result of .y revtew of the records, I could not ftnd any tndtcatton of the aforementtoned. Accordtng to our records, the Agency had a total beauttftcation budget for FY84-86 of $150,000, $110,000 for prOjects wtthtn a redevelopment project area and $40,000 for projects outstde redevelopment project areas. As of December, 1985, we had committed a total of $109,948 for projects within redevelopment project areas, leaving a balance of $52.00. Our commitment to projects outside redevelopment project areas totaled $13,290, leaving a balance of $26,710. Our records tndtcate that Progresstve Mortgage submitted a Beautiftcation Grant Appltcatton on January 15, 1986, at which time we had a balance of $52.00 for projects within redevelopment project areas. To substanttate .y ftndings, please revtew the followtng: a) Beauttflcation Program Budget/Application List. b) Letter from Glenda Saul, dated November 13, 1985, regarding request for assistance. c) Letter from Mr. Harry Jacks, dated January 16, 1985, (received January 16, 1986) regardIng BeautificatIon Application. d) Letter from Glenda Saul, dated January 24, 1986, regarding beauttfication program. e) Letter from Harry Jacks, dated July 28, 1986, regarding clarification of funding from EDC. Ezell James EJ:s:1866G Attachments <<-j I - .- ~ - ... i c !I vt - i; .. .- ~ i_ fa .:;1 e -: ;~..... .- .,..... ~ ~ . 1 ! J - 11'1 U .. I - 11'1 U ; I - I I -11'1 !I ;r . =i ~ .,.- I! .!. - 'I 'I ! ! i . 1- - - ~-- ..... J! I] - ..- ,~ 11 .'" B!; ;~ !; !j... It I'" ~-:I -:I -I ~ I' I~ cl I... :;;Q I:: 5i It II ~ I I. - ...... il -- :t: .- '" - w:5 il II . G ~~ 81 . . ~~ ""let ;u - '1- -=1 j!t .. .~ i.. '" ... -- .. '" . - c -e I~ .=. III .. "'. 0- ..- l,i j .. !~ .. .... j !! ...!e ~ ~ w~,-z,-.z",~~,-w~2,-zw"''-I'- ~~~~~~~~~~~~~~~~~~~ = ~ l~ggllglllllllllll~11 ~;gi;Q~i2~~2;~~.~2;~I. ...ON.let.~'.~N._I.o....S . . . . . . . . . . . . . . . . .. .. N~.""--~-.NN..~..let. ~. - - - .,. .,. 'I .. - - . 'I 'I -1 - .. .. '1.._ ,;: 'I . .-..... .-.. ~ ~l.~.~ UMI . 1 I"-It~l ~ =..~- -, · - .. · .. ,.. ~ ~-t"'~I~ ~ t~ -1 u - t ~ .."'.... ...... f u"'.f~ r..:.-", I III :-z ~ .t~~:~1 2 I ~~ .... f "~c.c..__ c- · w c... J ~ - 1112 ~e t.. 0 ~ -- ~~~ .....c __; --1 -c.-.. .."'_w. c-_. - c alii: - "'-i...."'~'" z_.... I:.-~...Il_-J t~c~~. c i'--...~I:.- .-111 '" . . ~--.-~--~.. ",.-..,,- -~- -IIIIII..III~CIII.~~III~_ ~ o~~ "'>"''''.-'Z-''''''CEoa. u 11'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'111'1 J ;~;~j~~~~~;~~~~~;;~;~ ~~N~jJJ~~~""~~~.~~.!._N~ ..............------- 1: ... ..'" _c I~ u~ - ;~ - c-. - .,. . M 10 . " J) .~-' .~. ~'. . J" I . , REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA. GLENDA SAUL DEcunvt: DlUt"rOII · Mo._bar 13, 1985 - . 1Ir. Barry L. Jacb, Pre.ideDt hoare..iye IIort..le Corp. .. 409 Ve.t 16th. Street Sa Bemar41Do, CA 92405 ..: hoare..ift Mort.... Corp "q..t for Aa.Utuce Dear 1Ir. ..Jacka: It i. our UDder.tancUq that JOu haye "ell worUq with the 1e00000c Dey.lopllent CouDcl1 for a loa a..oelat.d with Jour padilla _ye to US6 v. Buel1De. - Ve haft ren...d JOUr atie1patecS co.t. for rehabUitatlO1l of the 1N11dlq DIlce It i. acquired. A lood deal of th. .zterlor co.t. could ,ua11fy UIld.r our beautlflcatiDll proaru. '1'h1. prOlr.. CAll r.1abur.e JOU ODe-half of the co.t of .zterlor beautificatiOll up to a .az1.u. of $10,000. c( Xf JOU are iIlt.r..t.d ill partlclpatlq UIlder the prolra, pl.... f111 ill the attach.d applicatiOll fora ad aal1 It to our offic. aft.r JOU hay. purcba..d the property. !b. approval period tak.. about thre. ..eb. UpDIl approval, JOU hay. 90 4ay. to illitiate the work ad 90 day. aft.r 1D1tlatlD1l to cOllpl.t. the beautificatiOll project. 'a"eIlt i. aad. upOll coapl.tloll ad tn.pectlD1l of the .it.. If JOU haye ~ que.tlO1l8, pl.... f.el free to COlltact Sndy LeNder or Ezell .7.... of .,. ataff. S1Ileere1J, ~~ Clenda Saul EsecutiY. Director CS:SL:d.f:0794~ cc: S.. Helll.J. EcOlloa1c DeY. COUIl..l Ezell .Jae. EDclo.ure . OTY HALl . 300 NORTH -0- STREET . RM. 320 . SAN BERNARDINO. CALIFORNIA 92418 . PHONE: m4) 383-Dl TELEX: 6711291 RDEV UW ~... "I', '" -G Rffl..... (." ,... ;/". ,', f. .. .r -" ,'" ~- I1Al/t6~ ~ I .. ..~~ , .. ~" / ..-r: . \ ,,' J..' ." -' . s. . Mr. Ezall Jame. Redevelopment Agency City of San Bernardino 300 No. -D- Street San Bernardino, CA '2418 ~ ,"January 16, 1985 S c',- 19f(; Dear Mr. James: Enclosed you will find a application for the Beautification Program. We are requesting the maximum amount of funds available. ~hank you For further information please call 381-6431, and ask for Barry. - Sincerely Yours, CCt=: "( ~ J A. oJ"", ',rry 1.. Jacks, President BI.J/gi . 4D1W.ITHS1'RE[,aANBEANARDINOJCA .!t05WP.I.)"'!I5431 ~. ., I ........ . , . ~ f J.... ~ . ~ 1WlE:7 "'"Ij roe oS" r I :"-e.. MOr-"" tit , e ~,...~ ADDRESS' I ~.s-, IAJ. I3.R~." 'J. S". -Sa., 6~"^."c/,,, 0, c '\ · I 9 __y../ TELr'HONE IU48ER: l7'",/) 3Si"1 G. Y3 I OCHER Y ~ S TEIWCT COST ESTIMATE: .~~" lJa:::J. ~ START DATE: ~~kcl - I-Ir-~~ · Mort ~ Itart.d on .ach .pprov.d ,rant wttht. 10 'all. COMPLnlON DATE: - "F rD""\ A-00'V'6 d A+c:..- · Mort ..st 111 rOIl . Itart 'at.. , I . APPLICATI~ , ;~V' . . ,.. . . . . "'" ," ..~ , .!:\\ ',~" . 'so, BEAUTIfICATItvI 'mAN - 'LEASE DESCRIBE, II DETAIL. IMPROVDIEns TO IE DONE: ~ "'CC 0 "l T r" ... If). ~-a IJ-J M .. _h/J ~L 1',,-.1+. (, .'J7 S1 F+.J . .... ..".~.. .. ~ ~ j)ec-."""','6e- re'" , ,. ., ,~". r ~e. :bee:" r4 ~o r t."'!,.,.6..:...... J ~L~ to( PQ. r" a~o k. " I.N , NJ tJ ""'..r R.e,PA.. ;,. N~ D N ,>>, , ;" ~~,., us c ., ,.,~', If additional Ipac. II ft..d.d, pl.a,. attach. /w~ tA. r:> , <.! J:> '" #-' e,.., ~~ C(~ 'LEASE IleLUDE: - It.mlz.d cost .stl.at. - 'hotograph 0' the .IIsttng butldtng - SI.,1. s~.tch Illustrating the Improv...nt, . ~~~--1_ I~ PP CI t .~ .,\\ Dat. 1- I r: ,,? i .~ Dat. lJ30J/EJ/hb IIvllld '.'.15 .~;.~'" " , , ~ ' I REr'WELOP:MENT AGENC OF THE CITY OF SAN BERNARDINO, CAUFORNIA GUNDA SAUL DEclJnvE DUlEC.'rOR ..Juaary 24, 1916 IIr. Barry .Jacka 1256 W. la.ellDe Street Sa lemarcl1lLo, CA 12411 Dear 1Ir. ..Jacta & I appreciate your lDterut lD the City'. luut1f1cat1OD Proaru. JIoweyer, .. preY1oua1y atate4 to 1OU, there are DO fUDel. aftUable at ~h1a u.e. Cc, Within the nut f.. neb, I wU1 be reque.t1111 ren.1au to the proar&a ancl a441t1ODa1 f1lll41q. Aa pre.ently paree1yect, ~he ...1lc!IIe1lt w111 pron4e for a loen of the fUDct., rather than a arallt .. pre.aUy pronctect for. ODee Oe ren.act proar.. baa MeIl approyect, a _bar of .Y ataff will contact you to 4etera1ne whether you are at111 lDtereatact ill part1c1pat1!l&. - If you baye &I1Y que.Uou, ple..e call kell .J.... of .., ataff at 383-5081. :6L~ G1eDcla Saul Ezecut1ye Direcur CS:EJ:jalull6U 01Y HAu. . 300 NOR1H "'D'" STREET . RM. 320 . SAN BERNARDINO, CAl,D:ORNIA 92418 . PHONE: m4) 383-5081 TELEX: 6711291 RDEV UW ~_r e . . . CORP. .fl mortgage LntdinglBroleerage Pint! July 28, 1986 ~edeve10pment Agency 300 North -D- Street San Bernardino, Ca 92418 Attn: Eze1Jamea , .. Dear Mr. James: "'. ~his letter is to clairify the purpose of fu~in9 received from BDC. ~he !:DC loan was made soly for the purpose of Venture Capital. Upon approval of our loan request by !:DC, PMC was instructed to request beautification funds directly form RDA~~Our initial beautification application was made Januarv 15. 1"98;. . .. ~ '----"~ - (( ~o date all improvements to PMC has been completed from -out of pocket- funds. Respectfully, , ~- _ A I ~ - ,'" -"I ~ ~ ....,.~ Bar/y L. ;acks, President r JIOUT.Ne ~~. at. iof J.tE ~ ac ~ a.:J/ "1\'J~ ecr , --- -. I ---- , : ;;;:~J.., lOUT! c:orr -'C. . .. .... "--,..' f)o ~ ~ , - , .' ~1)t'1' 'n'" ~f/'// A14 ~ GLENDA SAUL EXF.C'tmvF. DIRECTOR REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA February 11, 1988 . Mr. Harry Jacks Progressiie Mortgage 1256 W. Baseline San Bernardino, CA 92411 lle: NW - POT - BEAUTIFICATION LOAN Dear Mr. Jacks: ( Your beautification loan from the Redevelopment Agency is delinquent in the amount of $754.84. This represents four montha of payments, from October 25, 1987 to January 25, 1988. The Redevelopment Committee has discussed your loan, and would like to extend an invitation to you to attend its next meeting, on February 18, 1988, at 4:00 p.m. in the Redevelopment Agency Conference Room A. You will have an opportunity to address the Committee at that time. ~ FIt ~-4"o Esther Estrada, Councilwoman First Ward EE:mv:3548G ~\j~ CITY HALL . 300 NORTH "D" STREET . SAN BERNARDINO . CALIFORNIA 92418 . PHONE: (714) 384.5081 TELEX: 6711291 RDEV UW -.- .--- ~ ..... Tiae: Place: Iloll Call: CLOSED SESSION 1J eR. IlrLcI- and- lJt- cI- ~ /-'/ / f'? 9JJtanlLL cd- ClJ f!.. lufturaS UDnELOPHEMT COMKITDE 4:00 p.a., '!bursday, February 4, 1988 Iledevelopment Agency Conference Iloom Coamittee Meaber Esther Estrada, Chairaan; eo.a1ttee Members Jess Flores, Michael Maudsley; Glenda Saul, Executive Director, Redevelopment Agency; Sandy Lowder, Deputy Director; John Boeger, Manager, Development Division; Barbara Lindseth, Manager, AccoUDting Division; Lorraine Velarde, Manager, Adain1strative Services; Sue Gonzales, Acting Development Specialist; Tim Sabo, Agency Counsel; Dennis Barlow, Senior Assistant City Attorney; ll1chard Benneclte, Mayor's Executive Assistant; Jia Richardson, Deputy City A.drainistrator; Kenneth J. Benderson, Director of eo..unity Developaent Departaent; Ilosalie Morales, Recording Secretary. Chaiman Estrada _de a action and was unaniaously carried that the Redevelopaent eo..ittee recess to a closed session pursuant to GoverDBent Code Section 54956.8 the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino did convene in closed session to discuss with its negotiator the purchase, sale, exchange or lease of real property and to give instructions to its negotiator concerning negotiations -( ITEM 110. 1 Itea Withdrawn ITEM 110. 2 DmUSTIUAL DEVELOPKINT BORDS (GATE CITY BEVERAGE DISTlUBUTORS mOnel) AMENDMENT TO THE IHDEHTUllE OF muST AIm AMENDMENT TO TBI LOAII AGUIHINT Barbara Lindseth answered questions of the Committee. The Committee recommended this item be forwarded to the Co_ission to appro.,e the recommended resolution. ITEM 110. 3. ADKIHISTIlATIVE FUND BUDGET Barbara Lindseth, gave a short presentation and answered questions. The Committee recommended this itea be forwarded to the Commis8ion with thier recommendation for adoption. The Committee received and filed this item as information only. rX.~ I r-/,- ; I ~ r ( ~ ITEM HO. 4 101m ISSUBS - DfCUASE IIf PDS POI. CDTAIH mUST FIDOCIBY S_VICES Pl.OVIDED BY SBCUa.ITY PACIFIC IfATIOIW. UIfK Tbe Co..tttee continued this ite. to the nezt Comaittee _etiDa. ITEM HO. S.' AGIlfG OP ROTES UC&IVABLE IlKPOI.T PCIl 'fill .,.1;11 OF JANUARY 1988 Tbe Comaittee reco_ended that this ite. be forwarded to the Coaaission as a receive and file itea. DS'I'SmE CDC - H.. It.. ICen Henderson, Director of the Co_unity Developaent Departaent of the City of San Bernardino stated that he wanted to address the issue regarding Progress1ve Mortgage. Mr. Henderson stated that he had a aeeting vith Mr. Barry Jacks of Progressive Mortgage, Councilvoaan Pope-Ludlaa, and hi_elf. During their aeeting the subject of the beautification loan caae up and Mr. Jacks indicated that he that the loan should be converted to a grant. Mr. Hender80n stated that Progres8ive Mortgage has 4 loans. Purther di8cus8ion ell8ued regarding the loan8. me deferred payaent8 on their loan for tvo year8 and they are to coaaence next aonth which vas one of the reasons for having the aeeting. The appraised value of the property was .148,000 and Progressive Mortgage has four loans on the property totaling t132,OOO which is about 89.9% encu.bered. Progress1ve has a fir8t 1n the ..ount of t80,OOO; a 8econd which is Collllunity Developaent Depart.ent' 8 loan of .27,314; a third loan with a private inve8tor in the ..ount of tlS,OOO; and the Redevelopment AgencY'8 loan in the aaount of .10,000. Mr. Jacks i8 asking the ca8e that hi8 beautification loan 8hould have been a grant becau8e when he initially applied it vas a grant program and the rules vere changed. Committee Me.ber E8trada directed 8taff to send a letter to Mr. Harry Jacks of Progres8ive Mortgage inviting hi. to attend the nezt committee aeeting to di8cu8s his delinquency vith the Committee and that Mr. Jacks should be prepared to discuss hi8 plans for bringing the account current. Tbe .otion vas unani.ously carried. ITEM NO. 6 MAIN SftEET TOWN BAIJ.. MEETING, PBBIl.UBY 24, 1988 The Committee recommended unani.ously to adjourn the Commission Meeting of February 15, 1988 to February 24, 1988 "Main Street Town Hall Meeting" Council Chambers 5:30 p.m. l04SH 2 J14 REuEVELOPMENT AGENt.., i OF THE CITY OF SAN BERNARDINO, CALIFORNIA GLENDA SAUL EXECuTIvE: DIRECTOR January 5, 1988 Mr. Barry Jacks Progressive Mort..ge Corporation 1256 West Baseline Street San Bernardino, CA 92411 IE: Beautification Loan Dear Mr. Jacks: Our records now show that ,our payaents are in arrears three IK)Uths. We have not received ,our payaents for the IlODths of October, Nov..ber, and Dece.ber and ,our payaent for January will shortl, be due, uking ,OU four IK)Uths delinquent. ( To avoid taking this utter before the Ma,or and Council, sitting as the Co_unit, Developaent eo...tssion, we will need ,our payaent of *566.13 by January 15, 1988. An additional payaent of *188.71 will be due on January 25, 1988. . We would appreciate your proapt cooperation in this utter. Sincerely, ~ikI Glenda Saul Ezecutive Director GS:JH:rm:0939B cc: Mayor Wilcox Glenda Saul Sand, Lowder Barbara Lindseth Chron Pile Redevelopment Committee Valarie Pope-Ludlam ~ITY HALL . 300 NORm oeD" STREET . SAN BERNARDINO . CALIFORNIA 92418 . PHONE: (714) 384.5081 TELEX: 6711291 RDEV UW REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: ACCOUNTS RECEIVABLE DATE: August 9, 1988 Synopsis of Previous Commission/Council Action: None (Community Development Commission)} Recommended Motion: Redevelopment Committee recommends that the following actions be authorized: 1. That the People's Choice $10.00 charge be written off. 2. That staff be directed to prepare a letter for signature by Commission Chairman or Acting Executive Director to Mr. Richard Cole requesting a written synopsis of activities that took place during his September 1987 trip to Washington, D.C. 3. That Staff be directed to prepare a letter for signature by Commission Chairman or Acting Executive Director to Commissioner Member Valerie Pope-Ludlam requesting reimbursement of the duplicate payment she received for the September 1987 trip to Washington, D.C. ~~,& ~ Sivature Contact Person: James E. Robbins Acting Executive Director Phone: 384-5081 Supporting data attached: YES FUNDING REQUIREMENTS: Amount: $10.00 $1,926.00 Ward: N/A No adverse impact on City: Project: Date: NW AUGUST 15, 1988 Council Notes: Agenda Item No. (p 1492R/JLV/mv August 15, 1988 S T A F F R E P 0 R T Invoices have been mailed to the following: Peoples Choice Rented space in the PEC Building Jan 1988 Request permission to write off books. $ 10.00 S.B. Westside CDC Travel expense incurred in September 1987 Options available: a) Write off half $963.00 as Richard Cole expense second half $963.00 was an overpayment to Westside CDC would need direction as to disposition. $ 1,926.00 b) Turn matter over to Dennis Barlow, Agency Counsel for legal action. As of this date, these invoices are still outstanding and staff seeks the direction of the Commission on the disposition of these two accounts receivable. The Redevelopment Committee reviewed this item at their August 4, 1988 meeting and recommended that the People's Choice charge of $10.00 be written off books. On the matter regarding the S.B. Westside CDC they instructed staff to request of Mr. Cole a detailed written synopsis of his activities while in Washington, D.C. They also asked that a letter be forwarded to Commissioner Pope-Ludlam requesting that she forward her reimbursement of the duplicate payment made to her in the amount of $963.00 within the next 30 days. In the interim Chairman Wilcox asked that the matter be presented to the Commission for review and resolution. Included in the backup are copies of the July 11, 1988 memo to Jim Penman, City Attorney from James Robbins, Acting Executive Director explaining what each of the receivables are and the July 13, 1988 memo from Dennis Barlow, Agency Counsel recommending that these receivables be brought before the Committee/Commission. The remainder of the backup is information on the receivable from Westside CDC. 1492R/JLV/mv August 15, 1988 INTEROFFICE MEMORANDUM C I T Y 0 F SAN B ERN A R DIN TO: JAMES E. ROBBINS Acting Executive Directo Redevelopment Agency FROM: DENNIS A. BARLOW Sr. Asst. City Attorney DATE: July 13, 1988 SUBJECT: Accounts Receivable ----------------------------------------------------------------- In reference to the four accounts receivable referred to in your memo of July 11, I suggest that they be put on the next Committee Agenda. The Committee may decide that the $10 bill is not worth pursuing. The Locus Partners matter may resolve itself. ~ I was under the impression that Shandin Hills may work itself out but, if not, the Committee should make the recommendation to initiate litigation to the full Commission. I strongly believe that a full report should be made to the Committee/Commission on the Westside CDC matter, and relieve staff of the obligation to make the decisions involved. BARLOW City Attorney DAB:cm ROUTING \.J~ :r' (P'b::>~ t. LJ.~ 8 ~ (b St',~ ~ J J 3 (.. c.f~ , ""'l :1 j , -0- No. UI - - an: tll. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA )ATE July 11, 1988 ro J1m Penman, C1ty Attorney Attn: Denn1s Barlow =ROM J1m Robb1ns, Act1ng Execut1ve D1rector ;UBJECT ACCOUNTS RECEIVABLE The follow1ng b1ll1ngs were ma1led out dur1ng the week of June 26, 1988. Amount Peoples Cho1ce S.B. Wests1de CDC Locus Partners ltd (Hatle) Shand1n H1lls Golf Club $10.00 (2nd b1ll1ng) $1,926.00 (4th b1ll1ng) $20,000.00 (5th b1l11ng) $20,083.18 (1 b1ll1ng) ,;r- A recap of each b1ll1ng follows: Peoples Cho1ce - Th1s organ1zat1on was rent1ng space 1n the Pub11c Enterpr1se Center and has a $10.00 ba lance. S.B. Wests1de CDC - Overpayment of re1mbursement for travel expenses 1ncurred 1n 9/87. Locus Partners ltd - The amount due 1s presently be1ng addressed 1n the negot1at1ons be1ng held between Hatle and Agency Staff. Shand1n H11ls - Note payment for Apr11 28, 1988. New Amendment was effect1ve May, 1988 for $12,958.25. B1ckler sent the $12,958.25 1nstead of $20,083.18. letter was sent from Development D1v1s1on advising h1m of error and that we would exchange checks. (I bel1eve it went before comm,ttee) Comm,ttee den1ed mak1ng amendment effect1ve for April payment. MEMO CONTI HUED PAGE '2 Please advtse us vhat addtttonal actton by staff should occur, tf any. In the absence of any addtttonal actton varranted on staff's part, ve v1ll prepare a status report to tnform the Redevelopment Commtttee. If you requtre any further tnformatton lorra1ne Velarde and Theresa Stack on staff are fam1l1ar v1th the matter. r/~~ Jtm Robb1ns, Act1ng Execut1ve 01rector JR:JlV:bz:1157B Attachment cc: Mayor W1lcox Barbara l1ndseth Theresa Stack lorratne Velarde Chron TI7-12-88 r' ~ REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: RFQ FOR SPECIAL AND BOND COUNSEL DEPT: DATE: August 8, 1988 Synopsis of Previous Commission/Council Action: None (Community Development Commission) Recommended Motion: Instruct Agency Counsel, Mr. Dennis Barlow to prepare the Request of Qualifications in final form and proceed with distribution. (/~ure~ Contact Person: James E. Robbins Phone: 384-5081 All Supporting data attached: YES FUNDING REQUIREMENTS: Amount: $ Ward: Project: All No adverse impact on City: Date: August 15, 1988 Council Notes: Agenda Item No. 7 1 491 R / J LV / mv August 15, 1988 S T A F F R E P 0 R T Agency Counsel previously discussed with the Commission the possibility of sending out a Request for Qualifications for Special Counsel and Bond Counsel for legal services where the Agency's General Counsel, due to experience or time constraints cannot perform. Mr. Barlow was asked to prepare the RFQ in draft for review and consideration. The draft RFQ was reviewed by the Redevelopment Committee at its August 4, 1988 meeting and they recommended that it be forwarded to the Commission for review and authorization to proceed. Said draft is attached hereto for your review and consideration. 1491R/JLV/mv August 15, 1988 C I T Y 0 F SAN B ERN A R DIN 0 .-,.- .---.--- INTEROFFICE MEMORANDUM , . . (' Io.l., ...i ~ ; .... '/~ '\, ~, ' - 2 t~88 ;;; ::t:o !2 ,~ .A", .~\\-- TO: RDA COMMITTEE FROM: DENNIS A. BARLOW DATE: August 1, 1988 SUBJECT: RFQ For Special and Bond Counsel We previously discussed the possibility of sending out a Request for Qualifications for Special Counsel and Bond Counsel for legal services where the Agency General Counsel, due to experience or time constraints, cannot perform. Attached is a draft RFQ for your approval. I am developing a list of firms that have experience in this area, and would welcome any input from the Committee or the Commission. BARLOW City Attorney DAB:cm Attach. ?:. l! " . 0e% '- ME' I 7--- JH '" Li- >;- ,,- J -' J: ~ , I,' _/ '1 C',: { t".. ~ -----71 r., j, '/' -++-:--,., .:..L-_-L- ORIG, 'tv;/ ROUTE CC?t_ {, ( ( , Lo / c c BERNARDINO 300 NORTH "0" STREET. SAN BERNARDINO. CALIFORNIA 92418 JAMES F. PENMAN CITY ATTORNEY (714)384-5355 , 1988 TO: SPECIAL COUNSEL SUBJECT: REQUEST FOR QUALIFICATIONS FOR SPECIAL COUNSEL SERVICES FOR THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO The Redevelopment Agency of the City of San Bernardino is requesting qualifications for Special Counsel to provide standard redevelopment special counsel services. In addition to other services, Special Counsel will be required to attend City Council, Community Development Commission, Committee, Agency staff, Planning Commission, and consultant meetings, as needed. If your firm is interested, Request for Qualifications by please respond to the attached p.m. on , 1988. If you have any questions regarding the RFQ's, please contact Mr. Dennis A. Barlow, Senior Assistant City Attorney, at (714) 384- 5256. Very truly yours, DENNIS A. BARLOW Sr. Asst. City Attorney DAB:cm Attach. .,~1 ..~ -':" ~ J l..J .. . \. ,.-v.C:Jfi6V :',- .....~'~vl'.r 1 ~.,~~ ~*" ." .r ..,.' REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR QUALIFICATIONS FOR SPECIAL COUNSEL PROGRAM The Redevelopment Agency of the City of San Bernardino is requesting qualifications for Special Counsel. Special Counsel will advise the Agency in connection with potential redevelopment projects, legal procedure, all aspects of the redevelopment plan adoption process and document language, draft necessary resolutions and ordinances and attend City Council, Community Development Commission, Committee, Agency staff, Planning Commission, and Consultant meetings, as needed. The Special Counsel will provide general legal guidance where necessary on all matters pertaining to documents or in connection with development, adoption, review and amendment of redevelopment plans, as well as agreements and financing for redevelopment projects. BACKGROUND The City of San Bernardino has thirteen established Redevelopment Areas and an active redevelopment program. The Redevelopment Agency is governed by the Community Development Commission made up of the Mayor and Common Council of the City. The City Attorney's office provides general counsel services and will review and approve Special Counsel. REDEVELOPMENT SPECIAL COUNSEL SERVICES In general, responsibilities will be to perform all normal and customary duties required of redevelopment Special Counsel from initial conceptual program development review through examination of documents in connection with bond sales. Among other services, and with authorization from the City Attorney, responsibilities will include: 1. On as-needed basis, answer technical questions and advise staff as to procedures and authorities relative to redevelopment plan development, adoption and amendment. 2. Serve as City Attorney support in connection with advising staff as to procedures, legality of documents, policy and plan adoption and amendment concerns, and legal implications. 3. At Agency expense, provide legal services and act as bond counsel when necessary for City's Community Development Department which is under contract to the Agency to provide housing services in relation to the 20% housing set-aside, single and multifamily mortgage revenue bond programs and state Housing and Community Development (HCD) and California Housing Finance Agency (CHFA) sponsored programs. REQUIRED INFORMATION 1. Describe your firm's experience over the past two years in serving as either special or bond agency counsel on matters involving each of the sub-areas below. (The Agency is mainly interested in your firm's experience with California redevelopment agencies and local governments.) For matters on which you acted as either special counselor bond counsel, provide the issuer's name, purpose of financing, and date of sale. If your firm is currently involved in serving as bond or legal counsel on any of the types of issues listed below, please note. a. Redevelopment and Tax Increment financing b. Tax allocation bonds c. Assessment and Mello-Roos Community Facilities district bonds d. Industrial development bonds e. Mortgage revenue bonds and state HCD and CHFA-sponsored programs. f. Joint public/private partnerships to achieve commercial, industrial or housing development. 2. Designate the individual(s) who will be working on day-to- day activities with Agency staff. Provide a brief resume highlighting their experience with the various financing types listed in Question 1. Where is the individual's main office and how accessible will this person be? 3. Describe your firm's general fee schedule for special counsel services in regards to the various financing types listed in Question 1. Also, provide estimates of out-of-pocket costs and other expenses generally billed exclusive of the said fee schedule. Provide examples of actual fees charged for the various types of financings. Indicate which fees, costs, and expenses are not billed on a full contingency basis and when the Agency will be billed for such costs should a proposed bond not be sold. Please submit a representative Special Counsel Services contract. 4. Describe your firm's fee schedule for Special Counsel services in areas other than those listed in Question 1. How is travel time billed? 5. What fOllow-up consultation and services will be provided without additional cost after the financing listed in Question l? 6. What is your firm's capacity to devote 80-100 attorney hours per month, if necessary, with little advance notice? 7. Provide any other information or discussion that you believe is relevant to Special Counsel. PROPOSAL REQUIREMENTS 1. Complete written proposals must be submitted to: Mr. Dennis A. Barlow Senior Assistant City Attorney City Hall, 6th Floor 300 North D Street San Bernardino, CA 92418 and received no later than p.m. (P.D.T.) on , 1988. PROPOSALS WILL NOT BE ACCEPTED AFTER THIS DEADLINE UNDER ANY CIRCUMSTANCES. 2. CONDITIONS FOR PROPOSAL ACCEPTANCE - This request for proposal does not commit the Agency to award a contract or to pay any costs incurred for any services. The Agency, at its sole discretion, reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with any qualified source, or to cancel in part or in its entirety this request for proposal. All proposals will become the property of the Redevelopment Agency of the City of San Bernardino. If any proprietary information is contained in the proposal, it should be clearly identified. 3. COPIES - Firms desiring to respond should submit ten (10) copies of their proposal in sufficient detail to allow for thorough evaluation and comparative analysis. 4. CONCISENESS - The proposal shall be concise and to the point. Costly bindings, color plates, gloss brochures, etc., are neither necessary nor recommended. Examples of previous work may be submitted but will not necessarily influence the evaluation process. A letter format not exceeding twenty (20) pages is requested. 5. ORAL INTERVIEWS - After written proposals have been reviewed initially, discussions with prospective firms mayor may not be required. If scheduled, the oral interview will be question/answer format for the purpose of clarifying the intent of any portions of the proposal. , '. The individual from your firm that will be directly responsible for carrying out the contract, if awarded, should be present at the oral interview. 6. SIGNATURES - The proposal shall be signed by an official authorized to bind the proposer. The proposal shall also provide the following information: (1) name; (2) title; (3) address; and (4) telephone number, of each individual with authority to negotiate and contractually bind the company and who may be contacted during the proposal evaluation period. MINORITY EMPLOYMENT The Agency is concerned about with which it does business. proposal the numbers of racial partner and associate level. minority representation in firms Please include as part of your minorities and women in both the CONFLICT OF INTEREST The Agency follows a conflict of interest policy with respect to law firms which have contracts with the Agency. As a condition of this RFP, respondents must offer to disclose all present and contemplated employment which is or may be adverse to the Agency or the City of San Bernardino. Please provide a conflict of interest statement by responding to the following: 1. List any litigation matters pending against the Agency or City of San Bernardino in which your firm is involved. 2. List any non-litigation matters in which you represent a client in negotiation with the Agency or City of San Bernardino. Any law firm awarded the contract must agree not to represent clients in matters (either litigation or non-litigation) against either the Agency or the City. Please indicate in your proposal that your firm intends to comply with this policy. SELECTION PROCESS AND SCHEDULE The preliminary screening and ranking of proposals will be made by the City Attorney's office with any staff assistance felt necessary. Each proposal will be evaluated based on the relevant experience and accessibility of the firm and personnel to be assigned to the Agency, and the proposed fee structure. The highest ranking firms will be forwarded to the Community Development Commission of the City of San Bernardino for final pelection. ITEM * & INTERNAL INVESTIGATION r- \ DISCUSSION, IF ANY REQUIRED I ON THE REPORT PREPARED AND PREVIOUSLY SUBMITTED BY THE CITY ATTORNEY'S OFFICE. ~ REDEVELOPMENT AGEl ~ -REQUEST FOR C~, JSION/COUNCIL ACTION From: James Robbi ns, Acti ng Executi ve Di recttubject: Date: Augu s t 8, 1 988 MOVE TO AUTHORIZE THE PAYMENT TO EADIE AND PAYNE, CERTIFIED PUBLIC ACCOUNTANTS. OF $2.500 FOR THE YEAR ENDING JUNE 30. 1988 AND $1,200 FOR THE YEAR ENDING JUNE 30. 1989 FOR ADDITIONAL WORK OF COMBINED AUDIT STATEMENTS. )t: Redevelopment Agency Synopsis of Previous Commission/Council action: June 15. 1978 - Resolution 3651 Contract with Eadie and Payne - $12,000 FY 77-78 May 7. 1979 - Resolution 3909 Contract with Eadie and Payne - $13.000 FY 78-79 May 19. 1 980 - Resolution 4076 Contract with Eadie and Payne - $15.000 FY 79-80 April 6. 1981 - Resolution 4166 Contract with Eadie and Payne - $20,000 FY 80-81 July 6.1982 - Resolution 4339 Contract with McG1adrey. Hendrickson - $12,400 FY 81-82 (Synopsis of Previous Action Continued) Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION) Move to authorize the Redevelopment Agency of the City of San Bernardino to reimburse to Eadie and Payne. Certified Public Accountants. the amount of $2.500 for the Fiscal Year ending June 30. 1988 and the amount of $1.200 for the Fiscal Year ending June 30, 1989 for additional professional auditing services rendered in connection with the preparation of a combined audit report. ~A~ Signature Contact person: James Robbi ns. Acti ng Executi ve Di rector Phone: 383-5081 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: $ $2,500 & $1.200 Project: All No adverse I mpact on City: Date: Auqust 15. 1988 Council Notes: Agenda Item No. '1 June 6, 1983 June 13, 1984 SYNOPSIS OF PREVIOUS COMMISSION/COUNCIL ACTION CONTINUED: - Contract with Porter, Wagner and Beebe - $16,000 FY 82-83 - RDA Contract with Porter, Wagner and Beebe - $18,500 FY 83-84 February 13, 1985 - CDBG Contract with Thomas, Byrne and Smith - $14,000 FY 83-84 May 30, 1985 June 5, 1986 May 18, 1987 April 18,1988 August 4, 1988 - Resolution 4766 Contract with Eadie and Payne - $21,800 FY 84-85 - Resolution 4891 Contract with Eadie and Payne - $22,900 FY 85-86 - Resolution 5016 Contract with Eadie and Payne - $25,800 FY 86-87 - Resolution 5104 Contract with Eadie and Payne - $26,000 FY 87-88 and $27,000 FY 88-89 - Redevelopment Committee recommended approval of the increase of $2,500 for Fiscal year 1987-88 and $1,200 for Fiscal Year 1988-89. REDEVELOPMENT AGEtt. _ , · REQUEST FOR Co-.~..,SI()N/COUNCIL ACTION STAFF REPORT On February 29, 1988, Redevelopment Agency Staff mailed Requests for Proposals to seven accounting firms in the San Bernardino and Riverside areas believed to be large enough to perform the financial audit for the fiscal year July 1, 1987 to June 30, 1988 and for the fiscal year July 1, 1988 to June 30, 1989 on the Redevelopment Agency of the City of San Bernardino project areas and report on the findings. The seven accounting firms and the proposals submitted by each are listed below: Firm 1987-88 1988 - 89 Eadie and Payne B.R. Sharp & Company McG1adrey Hendrickson & Pullen Ernst & Whinney Price Waterhouse Rogers, Anderson, Malody & Scott Thomas Byrne & Smith $26,000 $27,000 30,000 32,100 27,800 29,190 Declined to submit proposal. Declined to submit proposal. No response. No response. A contract was entered into with the audit firm of Eadie and Payne to perform the financial audit of the Redevelopment Agency of the City of San Bernardino for the fiscal year 1987-88 at the cost of $26,000 and to perform the financial audit at the fiscal year 1988-89 for the cost of $27,000. The finance department of the City of San Bernardino has requested a combined audit report for all of the Redevelopment Agency Projects. This combined audit report was not part of the original request for proposals and Eadie and Payne, Certified Public Accountants has submitted to the Agency an estimate of the additional fee for the combined audit report. The first year additional fee will be $2,500 for the year ending June 30, 1988 and $1,200 for the year ending June 30, 1989. The Redevelopment Committee recommended this item be approved. 0897A HUBERT R. DANIELS, C.P.A. MARVIN D. DUDLEY, C.P.A. J. FRANKLIN FlRRE, C.P.A. PATRICIA L. GILBREATH, C.P.A. JOHN E. GRAHAM, C.P.A. KENNETH N. PATTERSON. C.P.A. JOHN F. PRENTICE, C.P.A. DAVID M. THAYER, C.P.A. EADIE AND PAYNE CERTIFIED PUBLIC ACCOUNTANTS 330 NORTH "0" STREET P.O. BOX 1199 SAN BERNARDINO. CALIFORNIA 92402 AREA (714) 889-0071 UPLAND OFFICE: 390 N EUCLID AVENUE. SUITE 102 UPLAND. CA 91786 PHONE. (714)946-6220 MOl ANDlI OFFICE: 3OOE. STATE. SUITE 212 REOLANDS. CA 92373 PHONE (714) 793-2406 July 19, 1988 ~> , ~ ~C ~ l~ ~c ~ ~I ~ ~ (,? ~ o&J .s; ~ ~ ~..n <' 7-- V"c9 ~ ~ , ~~ , 'J17'tJ'J IQ~\~ Community Development Commission of the City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Gentlemen: Pursuant to your request, we are submitting the following estimate of the additional fee for a comprehensive report for the Redevelopment Agency for the years ended June 30, 1988 and 1989. r' The additional fee for a comprehensive report will be $2,500 for the year ended June 30, 1988, and $1,200 for the year ending June 30, 1989. 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':', .\:.:-.,,,.... ," .04.-.Y', .', .:..~.t .I~'__ ',rll.';.: '\ . {~ '.. . .::.~ ....::......~;'.. tJ:lt-IJ''\~:....~,..L.~ 4.,1'...~:J,1.i:'...-.:r.:i_ ~1..... ...:.t-....":".....-~ ,'Jo, ......~v... ,,),.,. ." """,' ~. '." " . .' i" . .'.' '. . '" ( -- - - - PROPOSAL FOR THE EXAMINATION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO t CALIFORNIA TABLE OF CONTENTS PAGE - Proposal Letter 1 Firm Description and Organization 4 Background Information on Eadie and Payne Partners 5 Prior Governmental Experience 14 I t Cl (- ~ J! l D Z c: IIJ 0 c: jIJ II J h,-!- OJ (')/ . ,I--- ) I .J - - , " PROPOSAL FOR THE EXAMINATION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA TABLE OF CONTENTS Proposal Letter PAGE 1 Firm Description and Organization 4 Background Information on Eadie and Payne Partners 5 14 Prior Governmental Experience i ~ e ~ .!J .~ (- E It ~ f i c: ~ o c: w r r" I _...; ,_ , )i r" / r~ ' ... .IOHN J. aAIR. C.,.A ..-.n- It. ~ C.,.A IIWMN D. DUDUY. ~A ..... J.IVIWS. C.,.A .1 fIIW<<UN...... C.,.A MrNCIA L. CIII.IMRH. c.P'A .IOHN E. GMHMI. C.,.A ICINNE'TH N."" ,_. C.,.A .IOHN F. P'MNTlCE. C.,.A DMDM. nunR.C."A EADIE AND PAYNE CERTIFIED ~.UC ACCOUNTANTS 330 NORTH "0" STREET P.O. BOX 11. SAN BERNARDINO. CALIFORNIA 12402 AREA (714) ~1 . WUIID 0fIPICE: - N. EUCUO AVENUE. SUITE 102 UP'LAND. CA.1716 P'HONE: (14) M.e22O _ _0fIPICE: IlIOE.ITATE.1UlTE 212 fEDUNDI. CA 12373 P'HONE: (14) JU.1M06 March 25, 1988 The Redevelopment Agency of the City of San Bernardino, California 300 North "D" Street San Bernardino, CA 92401 GentleJIen: Thank you for considering our firm for the examination of the financial statements of the various funds of the Redevelopment Agency of the City of San Bernardino, California for the year ended June 30, 1988. Our understanding of the projects to be audited is as follows: ( 1. Administration 2. State College Redevelopment Project Area 3. Central City North Redevelopment Project Area 4. Central City Security 5. Operation Second Chance 6. Central City West Redevelopment Project Area 7. Southeast Industrial Park Redevelopment Project Area 8. Parking District 9. Northwest Redevelopment Project Area 10. Mortgage Finance Issue of 1979 11. Industrial Development Bonds 12. City Wide Mortgage Revenue Issue of 1980 13. All America Golf Course 14. Parking District Expansion 15. Tri City Redevelopment Project Area 16. Uptown Redevelopment Project Area 17. South Valle Redevelopment Project Area 18. Central City Projects Redevelopment Project Area 19. Low/Mod Housing Fund (20% set aside) Our examinations will be made in accordance with generally accep- ted auditing standards, and will include such tests of the accounting records and such other auditing procedures as we consider necessary. In addition, we will prepare the Annual Report of Financial Transactions of Special Districts to be sent to tbe State Controller. We will also conduct a compliance audit and issue a report thereon. -}- r (.'>( /. '- /~ -! r The Redevelopment Agency of the City of San Bernardino, California Page 2 We would be able to begin our audit as soon as the contract is signed and have the copies of all required reports in your hands by Septem- ber 30, 1988. Eadie and Payne is one of the largest accounting fi~ located in San Bernardino County. Attachment One explains IIOre about our firm. We have also included background information about our partners, Attachment Two, and a partial list of our experience in governmental audits, Attach- IDent Three. In addition to the prior experience and background Ilaterial provided, our partners have had the following specific experience in audit- ing governmental units: 1. Hubert R. Daniels, CPA Mr. Daniels has audit responsibility for the Big Bear City COllllunity Services District and Big Bear Area Regional Wastewater Agency. 2. Marvin D. Dudley, CPA Mr. Dudley has audit responsibility for the San Bernardino Municipal Water DepartJlent - Water Utility and the San Bernardino Municipal Water DepartJlent - Sewer Utility and the Victor Valley County Water District. i i l.! :1 ICl r i +,.a.J ') 3. J. Franklin Ferre, CPA Mr. Ferre is currently the partner in charge of the Mt. San Jacinto College and Barstow and Riverside COllllunity College District audits. He was in charge of the 1981-82 audits performed for the San Bernardino County Grand Jury. ( i i c l&I i l&I 4. John E. Graham, CPA For many years Mr. Graham has been in charge of the audit of the San Antonio Water Co. and its related entities. 5. Kenneth N. Patterson, CPA Mr. Patterson has audit responsibility for the East Valley Water District and the Fontana Union Water Co. 6. David M. Thayer, CPA Mr. Thayer is currently in charge of the Riverside County Flood Control District audit and Big Bear Municipal Water District. -2- '-- ')! I /_ I . . . : ~'""., ., 'r {, 'V.'~ ..- "". ._', " , " I I I I I I I I I I w , ! III U ~ i i c ~ c au (' The Redevelopment Agency of the City of San Bernardino, California Page 3 In addition to the above experience of our partners, ..ny of our staff .eaabers have experience in auditing goveruaental a.eIlcies. We are the current auditors for the Redevelopaaent Agency of the City of San Bernardino and are experienced in auditing these funds. Our fin alao has extensive experience in reviewing and evaluating controls and procedures of an electronic data processing system. We have a trained and experienced staff, and because of our loca- tion, we are in a unique situation for staffing and supervision of the audit. Our fees would be based upon our standard rates. Our established hourly rates are as follows: Partners Supervisors Senior Accountants Staff Accountants Typing and Clerical $125 $75 $48 - $55 $38 - $41 $35 - $40 We would agree, however, that our fees for our ex_illation for the fiscal years ending June 30, 1988 and 1989 will not exceed $26,000 and $27,000, respectively, except for any additional work pertaining to the examination of subrecipients' of the C~unity Development Grant Program, as required by the Single Audit Act of 1984, which would be billed at our standard rates. We appreciate this opportunity to offer our services to the Redevelopment Agency of the City of San Bernardino, California, and look forward to serving you. Yours very truly, EADIE AND PAYNE !.l.-~~~ ,fl. @Q-~4 Hubert R. Daniels BRD/br Attachments -3- rl ~ '- >< ../ - J .~. I. I I Ii f ~ ("'i ~ l o z c: &U is c: &U FIRM DESCRIPTION AND ORGANIZATION Eadie and Payne was founded in 1919 in San Bernardino, California. The firm was originally organized and continues to operate as a partnership with offices in San Bernardino, Upland, and Redlands. Eadie and Payne has affiliated offices throughout the United States through an organization of accounting firms mown as Associated Accounting Firms International. This organization is comprised of aedium to large firms which have formed an association in order to provide a cOllllon pool for technical asshtance, professional education, and other services which are intended to benefit ~ber firms and their clients. This association makes it possible for us to provide a larger and broader range of expertise in virtually any given area of accounting than would otherwise be possible for a regional firm of our size. Our firm consists of approximately 60 personnel located in three offices in San Bernardino County. The organizational structure consists of partners, supervisors or managers, senior accountants, staff accountants, para-professionals, and clerical staff. The San Bernardino office serves as the primary office for staffing of most audit engagements and arranges for the services of our affiliated firms for certain highly specialized audit areas. ATTACHMENT ONE -4- ~.,/. , J__ .- )Ii. ~ J" ~: _ ~". ~~'_'~~\.C ,:'..~" r ~":'" , --- ! I I I BACKGROUND INFORMATION ON EADIE AND PAYNE PARTNERS i ~ ~ ~ : , a W ( ~ .i i c: &&I o c: &&I Hubert R. Daniels Harvin J. Dudley J. Franklin Ferre Patricia L. Gilbreath John E. Graham Kenneth N. Patterson John F. Prentice David M. Thayer ATTACHMENT TWO -5- r, (xl; C -, r - . "':".:. .~:.- . I. ... . . ":. . t ~ . . . ,_..._ t :.4 " ~.' ,_ ;':,":';'\r". ''; .{' \~,. ~.,' "'~__"..~,. ~ J- J 1-. I I I I I f HUBERT R. DANIELS EDUCATION: Graduated from the University of Redlands in 1963 with a major in Business Administration EMPLOYED BY EADIE AND PAYNE: 1968 ADMITTED TO PARTNERSHIP: 1979 PROFESSIONAL ACTIVITIES: Member of the American Institute of Certified Public Accountants Member of the California State Society of Certified Public Accountants Member of the National Society of Accountants for Cooperatives ~ I i.! , c {' i w z l o z ~ w o ~ w CIVIC ACTIVITIES: Past Treasurer, Chairman of Finance CODlni ttee, and member of Board of Directors of Arrowhead United Way -6- . I '~ " / /- I I I I r I MARVIN D. DUDLEY EDUCATION: Graduated from University of Southern California, College of Co_erce and Business Adainistration in 1947 with a Bachelor of Science in Accounting ADMITTED TO PARTNERSHIP: 1986 PROFESSIONAL ACTIVITIES: Member of the California State Society of Certified Public Accountants; former President of the Citrus Belt Chapter; former .ember of the State Board of Directors Member of the American Institute of Certified Public Accountants Member of San Bernardino Estate Planning Council i I AREAS OF EXPERTISE: Partner in charge of audit of San Bernardino Municipal Water Department (includes both water and wastewater utilities) for several years Partner in charge of audit of Victorville County Water District for several years Partner in charge of audit of Public Safety Authority of San Bernardino s.l f Cl III ~ rl (I i c ~ c w CIVIC ACTIVITIES: Past President, Arrowhead Area Council, Boy Scouts of America -7- " "-- "" f ~'. '".' , '~f' .. -.. .-Y I .'1It'-, -.... .- ...,. --~.., ....-..!,... -..... I I. I I r I ;]. FRANICLIN FERRE EDUCATION: Graduated from the University of Redlands in 1958 with a ..jor in Economics EMPLOYED BY EADIE AND PAYNE: 1960 ADMITTED TO PARTNERSHIP: 1973 PROFESSIONAL ACTIVITIES: Member of the California State Society of Certified Public Accountants Member of the American Institute of Certified Public Accountants Member of the Savings and Loan Committee of California State Society of Certified Public Accountants. Currently serving on subcommittee of the Savings and Loan Committee to develop a single audit program for "Loans Serviced for Others" Mr. Ferre has taught Savings and Loan Accounting for the American Savings and Loan Institute and Taxation and Auditing for the University of Redlands Member of Associated Accounting Firms International Electronic Data Processing Committee I ~ ~ ~ o ~ l ( ~ l c z C IU ZS C IU AREAS OF EXPERTISE: Currently performing Third-Party Review of an electronic data processing center serving fifty savings and loan associations in California, Nevada, and Arizona with total assets of approximately four billion CIVIC ACTIVITIES: Past President of the Kiwanis Club of Colton Past Board Member of the Colton Unified School Dis- trict -8- . I. /- I. I r PATRICIA L. GILBREATH EDUCATION: Graduated from California State Polytechnic University P~ona, in 1975 obtaining a Bachelor of Science in Business Administration with a ..jor in Accounting. Graduated from the University of Southern California in 1980 with a Master of Business Taxation. EMPLOYED BY EADIE AND PAYNE: 1977 ADMITTED TO PARTNERSHIP: 1984 I Ii ~ c !II l!: r~ w z l o z c w is c w PROFESSIONAL ACTIVITIES: Member of the California State Society of Certified Public Accountants Member of the American Institute of Certified Public Accountants Past Officer and Director of the Citrus Belt Chapter of the California Society of Certified Public Accountants. Member of San Bernardino County Estate Planning Council. Past President and Director of the National Associa- tion of Women in Construction. Member of the National Association of Accountants for Cooperatives - Far Western Chapter. Past .ember of California Board of Accountancy Techni- cal Review Panel. Representative to Redlands Chamber of Commerce. Member of Tax Committee of Associated Accounting Firms International CIVIC ACTIVITIES: Member of the Board of Directors and Campaign Cabinet for the Redlands United Way. Past Governor's appointee to the Developmental Disa- bilities Area Board No. XII. Governor's appointee to the State Council on Develop- mental Disabilities. Past Officer of the Soroptimist International of Redlands. -9- ,.-.1 '-- .. 1- ..1 / '. ~"""';.'" '. -" - I. 'oj . 't ;'''~''. _. ';';-, '. . I I I I I I JOHN E. GRAHAM EDUCATION: Graduated from Ball State University of Indiana in 1959 with a major in Accounting EMPLOYED BY EADIE AND PAYNE: 1961 ADMITTED TO PARTNERSHIP: 1973 PROFESSIONAL ACTIVITIES: Member of the California State Society of Certified Public Accountants Member of the American Institute of Certified Public Accountants Past President of the National Society of Accountants for Cooperatives I lo! f o II! ~i w z l o z c w is c w AREAS OF EXPERTISE: Partner in charge of prior hospital audits which included Redlands Community Hospital, San Bernardino Community Hospital, and Barstow COlIIIDunity Hospital CIVIC ACTIVITIES: Past President of Rotary Club of Ontario Past Treasurer of the San Bernardino Chapter of American Field Service Past Director of Santa Claus, Inc. -10- " f I' I I I I I I I !( KENNETH N. PA'Ii'ERSON EDUCATION: Graduated from Penn State in 1957 with a major in Business Administration EMPLOYED BY EADIE AND PAYNE: 1957 ADMI1i'ED TO PARTNERSHIP: 1965 PROFESSIONAL ACTIVITIES: Kember of the California State Society of Certified Public Accountants Kember of the American Institute of Certified Public Accountants Past chairman of the Board of Directors of Associated Accounting Firms International Past committee chairman of the Management Advisory Services for the Citrus Belt Chapter of the California State Society of Certified Public Accountants Past chairman of the Personnel Committee of the Citrus Belt Chapter of the California State Society of Certified Public Accountants Past President of the Far Western Chapter of the National Society of Accountants for Cooperatives f! I i ~ I ! '" u ! l i c ~ o c w CIVIC ACTIVITIES: Past President of Rotary East of San Bernardino Past member of the Board of Directors of the San Bernardino Chamber of Commerce Kember of the Board of Directors of Inland Action Past member of the Board of Directors of Arrowhead Country Club -11- I~ I i w 1 C~ ! i c ~ c w JOHN F. PRENTICE EDUCATION: EMPLOYED BY EADIE AND PAYNE: ADMITTED TO PARTNERSHIP: PROFESSIONAL ACTIVITIES: Graduated from California State Polytechnic Univer- sity, Pomona in 1975, with a aajor in Accounting 1976 1984 Member of the California State Society of Certified Public Accountants Member of the American Institute of Certified Public Accountants Member of the National Society of Accountants for Cooperatives Member of the Savings and Loan Committee of the California State Society of Certified Public Accountants, Citrus Belt Chapter -12- , . .::.. )( l, 1. - '- . DAVID M. THAYER EDUCATION: Graduated from Fresno State College in 1971 with a ..jor in Business Administration EMPLOYED BY EADIE AND PAYNE: 1971 ADMIn'ED TO PARTNERSHIP: 1981 PROFESSIONAL ACTIVITIES: Member of the American Institute of Certified Public Accountants Kember of the California Society of Certified Public Accountants Member of the National Society of Accountants for Cooperatives I 51! ~ o ~r Ii ... u (~ c ~ c w -13- i, I, ., ,:.. . ....... t,,! :. # ':'" . -'~f -....L:. t"': r:-;.. : .'. _.' :-_.....,."l '~~ L Ma;....~~~o~.;!..........~~....,....J.-.Q~'j.:~..." L.J'. '\ ",,' . ~~ ',' ,'. ~. ,:.!~ "~<:,;\." . . ",' 's'"t" ,,' ' i ~1.... J~-", ~: 1W11..;....~~...u........L~'~. ~}f ~'~~'\'..l.dII~. !.J.-"'i.:':Jlr..>,....~-~..T.-A.. - I! J i ~ f .0 . II! t '" u w z \"~ EADIE AND PAYNE PRIOR GOVERNMENTAL EXPERIENCE is c w ATTACHMENT THREE -14- ,:, c,., ".: . """"l:"~.; .' .~' -or . ~ T."" ".. . ., ,__." . .. ........ '. "-.L~_'~.,~.,.. S_~T '. ~..""",.""",, U.. . ....~"1V.....~~... ...~... _ .. . !lII' ,I 1- ...... . , - f . ~'.:i. '~':i. ',..,.~ ~ .', ' . '.' ~',,: }~~ ~ ,,'.':. :'. '.'..... " , - - ......~ill....,\.41 ...C~uL.~ ~'J.J.~~.J~ .:...~. :.M4-IIj&J.l(.l,..&..;._....~~,.or,~:_.,K::I'....~ . - PRIOR GOVERNMENTAL EXPERIENCE Eadie and Payne has audited a nuaber of local lovernaent alencies. These audits include the following: f Q Z C 1&1 o C 1&1 Ci ty of Redlands City of Redlands - Revenue Sharing Redlands Redevelopment Agency City of Redlands - Public Works Grant Redlands Community Block Development Grant City of Redlands - Anti-recessional Compliance City of Colton Colton Redevelopment Alency San Bernardino Conservation District - Royalty Audit San Bernardino Valley College California State Collele - San Bernardino - Various Funds County of San Bernardino - Auditor-Controllers Division Redevelopment Agency of San Bernardino - Central City Redevelopment Agency of San Bernardino - Central City East Redevelopment Agency of San Bernardino - Central City North Redevelopment Agency of San Bernardino - Central City South Redevelopment Agency of San Bernardino - Central City West Redevelopment Agency of San Bernardino - Industrial Park Redevelopment Alency of San Bernardino - Meadowbrook Redevelopment Agency of San Bernardino - Northwest Redevelopment Agency of San Bernardino - Operation Second Change Redevelopment Agency of San Bernardino - Park District Redevelopment Agency of San Bernardino - Southeast Industrial Park Redevelopment Agency of San Bernardino - State College San Bernardino Public Safety Authority Santa Ana Watershed Project Authority East Valley Water District Big Bear City Community Services District Big Bear Municipal Water District Big Bear Area Regional Waste Water Agency Big Bear Pest Abatement District ." ~ I ~s.? f ! r~ -15- -- I. I I r f! I B " J '1 0~ i c ~ ~ - ~OR GOVElOOfENTAL EXPERIENCE (Co&...inued) Mojave Water Agency San Bernardino Municipal Water District - Water Utility San Bernardino Municipal Water District - Sewer Utility Victor Valley County Water District In addition to the above local governmental units, we have a great deal of audit experience in governmental agellCY work and fund accounting work such as San Bernardino Community Hospital, Barstow Community Hospital, Redlands Community Hospital, The University of Redlands, Mt. San 3acinto 3unior College, Barstow Community College, Riverside City College, Mt. San Antonio Community Hospital, The San Bernardino Indian Center, and ..ny suilar agencies and private foundations utilizing the principles of fund accounting. -16- -/ ". ..... .... 'T:C~"" '" "'-- .......... "J" " '~~~'." . . "',;,:{;f.;';"I'" ',..' '. . .,.... ...i~~ :':'-{:~.:or'''''.,~ . .... .......... ~~t~~~:ki.~16~,2ilJf~~~~....i:::.~'l.:S::;.~.......,,'~.~ .,..... REDEVELOPMEN, ~GENCY - REQUEST FOR COMMISSIO~/~OUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: UPTOWN - MENTAL HEALTH BUILDING, 101 NORTH "I" STREET DATE: AUGUST 8, 1988 Synopsis of Previous Commission/Council Action: 11-08-84 Resolution No. 4677, to acquire 101 North "I" Street for the purpose of leasing same to Mental Health Association. 11-19-84 Lease Agreement approved in concept. 11-27-84 Resolution No. 4688 approving lease. 12-01-84 Continued request to amend lease. 01-21-85 Resolution No. 4714 amended square footage in lease. 09-22-86 Resolution No. 4932 authorized Rental Agreement. 09-09-87 Motion agreeing to a Compromise and releasing of claim of past due rents upon certain conditions. 01-19-88 Closed Session. (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Authorize Redevelopment Agency staff to spend up to $5,000 for security and clean up, to market the property with a local broker, with an exclusive listing, and to negotiate a sale at its appraised fair market value ($455,000). '/~'YI j~ Wna ture (;1I2L _ ~ Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: 3rd FUNDING REQUIREMENTS: N/A Project: Uptown Date: August 15, 1988 Council Notes: Agenda Item No. ~ 4241G:SG:sm 8/15/88 1 S T A ~ F R E P 0 R T The Mental Health property 101 North "I" Street, consists of two parcels - a 12,648 square foot parking lot and a 36,061 square foot parcel improved with a structure containing 10,000 square feet on the main floor and a 3,000 square foot basement. The property is a former elementary school building which has been rehabilitated and converted to office use. The structure is 61 years old, interior improvements are 7 years old and include suspended acoustical ceilings, skylight in central hall area, recessed neon lighting and seven year old central air conditioning and heating system. The interior of the building is in average condition. In January 1985, the Redevelopment Agency purchased this property for $600,000 with a $50,000 cash down payment and financing the balance of $550,000. The property was purchased to facilitate the relocation of the Mental Health Association of San Bernardino County (Mental Health) who were then located on property which was to be developed for low-cost housing. At that time the property was appraised at $590,000. The Redevelopment Agency entered into a 5-year lease with Mental Health in January 1985. Mental Health made only one lease payment and in June 1987 was delinquent in the amount of $105,300. The Redevelopment Agency filed a complaint for unlawful detainer which resulted in a stipulated judgment and order wherein the Redevelopment Agency waived all past due rents and Mental Health agreed to pay $2,500 per month rent and to vacate the premises. They paid a total of $27,650 rent and vacated the premises on July 8, 1988. To date the Redevelopment Agency has approximately $669,000 invested in this property (see attached for details). Estimated monthly maintenance costs are: Landscape Maintenance Utilities Miscellaneous $200.00 150.00 50.00 $400.00 per month It is estimated that it will cost approximately $5,000 to clean up the building and grounds to make it marketable and to provide adequate security to prevent vandalism while the building is vacant. On July 7, 1988 appraiser Edward G. Hill, Jr. appraised the property at $455,000. This is approximately $214,000 less than the Redevelopment Agency has invested in the building. Attached are excerpts from the appraisal. The available alternatives are: 1. Spend approximately $130,000+ to bring the property into an improved condition and hope to sell or lease the property. 4241G:SG:sm 8/15/88 2 This alternative is not attractive as there is no assurance that the $130,00 investment could be recouped in a sale or that the property could be leased at a rate to generate an adequate return on the Redevelopment Agency's investment. 2. Attempt to lease the building in an "as is" condition. It is estimated that the economic rental in an "as is" condition would be $0.25 per square foot for the ground floor and $0.15 per square foot for the basement area. If these rental rates could be obtained this would generate an annual income of $35,400 which would only be a 5.29% return on the Redevelopment Agency's investment of $669,000. This alternative is not attractive as even if the minimal rental could be obtained there would be a poor return on investment. 3. Do nothing with the property, holding it until such time as land values increase sufficiently to sell at or near the amount invested. Land values would have to rise to about $14.00 per square foot to recoup the present investment. At present the land value for the property is $2.50 to $5.50 per square foot. It appears that it would be many years before land values will rise to the point where the property could be sold at $14.00 per square foot. This is not an attractive alternative as there would also be continuing maintenance costs and staff time involved in property management. Values would have to rise even higher than $14.00 square foot to repay the cost of holding the investment. 4. Sell the property "as is" at or near the $455,000 appraised value. This appears to be the most attractive alternative and the least costly to the Redevelopment Agency. If the property could be sold at $455,00 the Redevelopment Agency would net approximately $415,000 after brokerage commissions and brokerage costs. The matter was reviewed by the Redevelopment Committee at their August 4, 1988 meeting. Staff and Redevelopment Committee recommend marketing and negotiations for the sale of the building. In the past the Redevelopment Agency has been reluctant to give an Exclusive Listing to any real estate broker due to potential allegations of favoritism from the brokerage community. Past efforts to market this building by distribution of a fact sheet to the brokerage community asking the $600,000 purchase price have been unsuccessful. The Redevelopment Committee recommends an exclusive listing with a local broker to actively market the building. 4241G:SG:sm 8/15/88 3 MENTAL HEALTH BUILDING EXPENSES Through June 30. 1988 Acquisition of Building: Deed of Trust $600.000.00 Escrow Fees 598.00 Taxes (Escrow) 2.352.99 $602.950.99 Interest on Notes: Bunker/Swing 52.718.00 S.B.CHy Unified 5.670.00 58.388.00 Maintenance: Insurance 3.217 .00 Clyde Thompson Con. 176.00 3.393.00 Legal: CHy 460.88 ( Sabo & Deitsch 3.470.50 3.931.38 TOTAL EXPENSES ~668.663.37 RENT RECEIVED: July 1985 September 1987 March 1988 $3.900.00 10.000.00 13.750.00 TOTAL RENT RECEIVED 0784A 7/15/88 ts $27.650.00 I. , I. ~. edWARd Q. hill, JR. 1817 NORTH '0' STREET SAN BERNARDINO. CA 92405 (714) 881-1864 88-177 July 18, 1988 Ms. Susan Gonzales Redevelopment Agency of The City of San Bernardino City Hall, 30e North "D" Street San Bernardino, California 92418 Re: Appraisal of Real Property Located At 101 South "I" Street San Bernardino, California DeaL Ms. Gonzales: 1. My estimate of value is --FOUR BUNDRED FIFTY-FIVE ~BOUSAND DOLLARS-- ("' ($455,000) 2. Price per comparative unit: $35.00 per leasable square foot 3. The Date of Value is July 7, 1988. 4. This valuation is predicated upon current available market data. The effect of the recently passed Tax Reform Bill cannot be measured at this time and any positive or negative effects on real estate values are not contemplated in this appraisal. l I I I July 18, 1988 Page Two ~I 5. This valuation includes the following investigations or studies: a. Property Inspection b. Market surveys for: 1) Land Sales 2) Improved Property Sales 3) Rental Data 4) Capitalization Rates 5) Vacancy 6) Other Supporting Data (" 6. The following matters have not been investigated: a. Conditions of Title b. Geological or Engineering Data 7. The purpose and function of the appraisal are to pro- vide the fair market value for sale of land and improvements. 8. The property improvements consist of an average Class D, General Office structure over a Class C Basement with attached and adjacent parking areas. 9. The significant "Positive" factors influencing the the value are: a. Good freeway access to north and south. July 18, 1988 Page Three b. Traffic flow going to and from Central City Core retail and administration areas. c. Potential freeway signage exposure. 10. The significant -Negative" factors influencing the value are: a. Age and condition of the improvements both inside and outside the structure. b. Location on fringe of Central City core. c. Change of zoning and use by the new General Plan. (" d. Transitional neighborhood and under-utilization of properties to zoning. 11. The best use of the property is considered to be General Office under the old zoning requirements or Research and Development under the new zoning requirements if building is to remain intact. 12. Comments regarding marketability. The subject property was terribly abused by the last tenants. It would take an estimated amount in excess of $10.00 per square foot of leasable space ($130,000) to bring the structure to leasable condi- tion to achleve maximum economic rent. If the owner were to reduce rental expectation by fifty percent, it is assumed a long-term rentor would see the value of location, access and recognition that the subject property possess I and fix up the structure for their own use. .....-_.._~~--_.----.,.- -- July 18, 1988 Page Four 13. Property Data (See Attached). Incorporated into the valuation estimate are the limiting conditions and assumptions which are found in the Addenda. Also included in the Addenda are a resume of qualifications and a partial list of clients. I certify to the best of my knowledge and belief that the statements and opinions contained in this report are correct: that I have no present or contemplated future in t erest in the propert y appra i sed; and ne i t her the amount of my fee nor my employment is contingent upon the amount of value reported. (' war ill, Jrr Real Estate Appraiser MWI/EGH/bd Mark W. Illsley has been the administ rator and collator of data in this report. He has also ass~sted in the areas of judgment. His goal is to gain techniques and experience as a fully qualified independent appraiser. Edward G. 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".~ lI:,'4~5ir' ~..,,;:: ~ r - - + - - ~ - ..,~~ - - ~ - - ~. .",:;"~i"( ._~:7)- - - ~ iSEf'ut.'i~..,: ~.~ A'IO.. ~I -i F ,. ~ All~: :~.-., . !IT.. ~ ! t"i~~:':' :;'"~,;~; A. WA: : ~ ~ A: LINCOLN Av ~ ~rE III -c I ~lIii~ ~ . '~~'': C \J I liNe .IN Av ~ .1lOOQl~ T ! ~ ! II~V.~ ~!l ~.. = !~ 1M .:+.' -" ,,-.\ '.'~;.:.:-~..:,:~,.:j ~ ~ en 8ELLE. ~ '!4: ~ J I .... z ... .. I ,. ~ .--.- ...,..;. ,:.":.' -l en ,!,!,O I ""~ :.: ... (I) ~..__. -i 1=' V -I. WATERMAN ,t, aOD )0() 200 \f)O 100 zoo. -I ~ ..., "'00 """.......:, . I I I ~ P I If '~ti! ',,;cr. \ ?! --U" fi:I ~:; r\fl (I) '. ~, ~~n ~ ~O[ ~ ~ J " 0 I ? 't ;::::!! 8 Z ~ - L...,J~JN -il ...~..; (J) 4- I" IiOISY 11 ~ Sl i ~ ,,81;; ~ ~ ST I '>-~..~:c f -1 I 1 ::'I! ~ ~ l ~ .----..1 6" _. :-~i~ ~ TON ST~i = ~!";') f --II ~-IDl I I r:....; j -l I > ~ ! (J) ~ '" i'. ..... (tI- ~ CllEST Vlf. AV . _ ... ...: % I I < · -t ~ -< ........... ,.. ~ . / 2 Ov_J- : . -- n;:: , . ~ 1,0. _. ~..__.... _ _ _ ~...~ 1':. I ~ I I I I I I I I I ( I I ,I I I I I Location and Accessibility: The subject property is located in the southwesterly portion of the City of San Bernardino at the intersection of "I" Street and Rialto Avenue. The subject fronts "I" Street and backs up to the Interstate 215 Freeway. "I" Street parallels Interstate 215 through much of the industrial/commercial portion of San Bernardino. Access to the freeway from the subject property can be found to the north off of Second Street (one-quarter mile) or to the south off of Mill Street (one and one-quarter miles). The subject is also located on Rialto Avenue. This business route acts as a major arterial street connecting south San Bernardino with Rialto and Fontana. The subject parcel is located just outside the active development (or redevelopment) core area. One mile to the southeast, the City of San Bernardino extended "G" Street to intersect with Mill Street. This thoroughfare has opened industrial properties up to more traffic flow and provided better access. This area is experiencing new industrial space development. The property is one-half mile to the west of the Central City Mall retail shopping center. It is also located less than two miles from the Central City Administrative, Judicial and office core. It is not to suggest that this property is benefited greatly from its location near to these areas of development or greater activity. Close access to these areas is positive though and can be beneficial when attracting a potential tenant or buyer. As is noted, the area of subject is located in a good position close to the larger Central City community and major routes are conveniently accessible for travel to surrounding areas, but the subject is still considered to be located in a 'fringe' or 'neighborhood' area. j ~ I II I I I I I I I 1(" I I I General Market Background: Comments related to the general market background area of subject are included as Exhibit A in the Addenda of this report. The pert inence of these comments is to reflect the expanding and/or changing Central City core of San Bernardino. Additionally, incl uded in Exhibi t A is a demographic data report by the California State Chamber of Commerce. This data will provide the reader with a San Bernardino profile for factors which impact the City's economics. Neighborhood Character and Trends: The neighborhood of subject is characterized by transitional uses, both commercial and residential. The Interstate 215E Freeway is, in some ways, the boundary between the downtown core expansion and older vintage industrial and commercial developments along with residential housing. The subject lies to the west of the freeway in an area that could be described as being in the 'fringe' between stable market activity and uncertain market activity. The neighborhood was greatly influenced in the past by the proximity of the Atchison, Topeka and Santa Fe rail yards one and one-half miles to the northwest. As activity in this rail yard has been curtailed, due to reduced economic activity, influence to the subject has decreased. The area with the greater market activity is now to the southeast of subject. Being located to the west of the current central core expansion activity, the uses of land in the neighborhood are limited by market activity. The stretch of Rialto Avenue west from Interstate 215 is viewed to have mixed uses where small single family residences and apartment structures are mixed in with I ~ ---. I I older industrial buildings. North and south of subject along "I" Street, the neighborhood is predominantly commercial/industrial usage with some older single family houses mixed in. Adjacent to the subject property (north) and in front of subject's extra parking lot is an older multi-story apartment structure. North o~ the apartment are single family residences and then a used car lot facing Second Street. On the west side of "I" Street across from subject is a machine shop and then north to Second Street are single family homes, (See Neighborhood Graphic). (" Being located on the outside I fringe I of economic and market activity areas coupled with the transitional usage of developed real estate and reduced activity at the rail yards, the future economic and market trends of properties in the area would be considered as intermittent depending on availability of land in the current active growth areas. The only activity of development in the immediate area is the demolition of the Goodyear retail outlet on the southeast corner of Third and "I" Streets. This structure was demolished and the parcel has been put on the market for sale. At this date, the 71,600 square foot parcel is listed for $6.50 per square foot. Upon inspection, this was the only development activity in the immediate area. It must also be noted that the subject property is 'located in a San Bernardino City Redevelopment Area (Uptown Project Area). Although beneficial to a potential owner of the subject due to financial considerations, this designation and the appropriate benefits that come with that designation will not improve the marketability of the property to any significance until other better located properties also located in the redevelopment districts within the city are absorbed. ~ I< / I<EA ~jSC~(JNT 77I<ES I I RIA-LTG S ;:::1( AvE::., , I 5UBJt:CT SFR. / I WA-,E"RS H '\ S c:..n SFR NAArME"f'fr u -I INTERSTATE ~ .:::0 ... (T1 ~21S- I E SFR.. (T1 SFR ~ --i T SF'({ A-L.LE'( SF~ I SfR SFR USED USED CA-R CA-R. LOT I . _LoT NEIGHBORHCOD SeCOND ST~E.GI SI~E1t~ .....-- ~- I I uses (such as the single family residences and apartments) . Due to the ex istance of a newly adopted General Plan, it is unlikely that zone changes in the area will occur in the near future. Physically, the subject property is adequate as office space with adjacent parking. As currently developed, it suffers from age, mis-use by prior renters, depreciation and restrictive design features when comparing it to a modern office structure in the central core area of the ci ty. Because the facil i ty is in a secondary locat ion, the current structure suggests an adequate use for the subject property until such time as the market or the physical condition of the building dictates a change in the usage. ( As was mentioned in prior text, the zoning has been changed from General Commercial to Light Industrial. This designation changes the best use, approved by the Ci ty, from off ice to 1 ight indust rial bui ldings. Unt i 1 such time as the current structure cannot be used as an office or the market determines that it is economically feasible to demolish the structure to develop light industrial buildings, the best use will have to remain as is developed. Description Of Improve.ents: Parcel One (APN 134-331-12 and 134-331-24) is improved with a structure that was completed in 1927. Designed initially as a school, the subject has some qualities in its construct ion that allowed it to be convert ible to general office space and allowed it to have fair value. The main structure is a Class D, Average, General Office. The main floor cons ists of approximately 10,000 square feet. The basement area is des ignat ed Class C, Average and has approximately 3,000 square feet. ~ '-,. I I I I I I General: Class: Size: Quality: Exterior: Foundation: Walls: Roof: ( Doors and Windows: Xnterior: DESCRIPTION OF IMPROVEMENTS D, Marshall Valuation Service Main Floor Basement 10,000 sf 3,000 sf Average Poured Concrete Redwood, later covered with lathe, wire and stucco Pitched two sides, covered with felt Glass in main entry Wood Frame Walls: Partitioning: 5/8" Drywall, Painted Floors: Ceilings: Doors: Special: Lathe and plaster Main Floor - Wood Basement - Concrete Both covered with wall to wall carpet. Suspended acoustical tile Wood Skylight in central hall area I ~ f I I Plumbing: Lighting and Electrical: Beating and Cooling: Yard Improvements: Age: Condition: (' Water and sewer in rest rooms Recessed Neon 230 Volt 3 Phase, 110 Volt 7 year old central air conditioning and heating system. Asphalt paved parking area to the north and west of the building. Landscaping in front and south side of building. Structure - 64 Years Old Interior Improvements - 7 Years Average I ~ I I "~t' ~ .it'" .:.. .1 Q==E ,t ,-.: -::r-~; I . ~--=" - .J! . . -;: L"".J ::j .L-' I ~ __ ~.....:. --~ :~. ;'.:-:"0' P'J-: I j rl II f'., ~J f? . ,....c -,. _.~ "I .~.: . "-l' '1 . ;u ~ ~rf=b... ~ ~. ." ...... 7 a:J'_w: - ..... ~J'... ;: -t =t. ~~.~ . t I: v _ I: . ~'. -~-l-=-I_. "...~ - .~.~.: j .~' ... -- ~ ~_ . .-.:ri_.d.u~ i- .~ L_ ___ I. I ! :: ~:ra 1-. "i~ -', ... , i L-:-:- ......: FLOOR PLAN I I. t t ~ ~ , I LOCATION: AREA: SHAPE: I TOPOGRAPHY: ZONING: UTILITIES: Ir OWNER OF RECORD: TAXES AND ASSESSMENTS: LEGAL DESCRIPTION: PROPERTY DATA 101 South "I" Street San Bernardino I Improved Parcels: 186.10' x 193.77' = 36,060.:!:. sf Adjacent Parking Area: 68 , x 186 = 12,648+ sf 48,708.:!:. sf Improved Parcels - Square Parking Area - Rectangular Level C-M All are on site City of San Bernardino Redevelopment Agency APN 134-331-23 APN 134-331-24 APN 134-331-20 City Owned Properties Exempt From Taxes See the following page The reader's attention is directed to the attached plat map. ~ I LEGAL DESCRIPTION: ( I APN 134-331-20 Waters Subdivision of Blocks 7, 8, 9 and 10, City Lots 11 and 12, Block 8, except west 131.33 feet and except highway. APN 134-331-23 Waters Subdivision, Blocks 7 through 10, City portion Block 8, described as be- ginning at point 149.6 feet North of Southwest corner of said Block 8, thence continuing North 36.5 feet to Southerly line Waters Street, thence East 193.77 feet, thence South 36.5 feet, thence West parallel with southerly line Waters Street 193.77 feet to POB. APN 134-331-24 Waters Subdivision, Blocks 7 through 10, City portion Block 8, described as be- ginning at Southwest corner Block 8, thence North 149.6 feet to point South 36.5 feet of Southerly line Waters Street, thence East 193.77 feet, thence South 149.6 feet to Northerly line Rialto Avenue thence West 193.77 feet to POB. The above legal descriptions are per Assessor's Records. ~ ~ - REDEVELOpMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins. Acting Executive Director SUBJECT: AGREEMENT FOR ARCHITECTURAL SERVICES DATE: August 10. 1988 Synopsis of Previous Commission/Council Action: 08-07-18 Resolution No. 5130 adopted and authorization given to enter into agreement (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: A. Motion to amend Resolution No. 5130 to reflect the following changes on the agreement for architectural services. B. Direct staff to amend the contract in accordance with amended Resolution. C. MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AMENDED AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND LEON H. ARMANTROUT, ARCHITECT, RELATING TO ARCHITECTURAL SERVICES. L~ @'nature Contact Person: James E. Robbins Phone: 384-5081 All Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Not to exceed $50.000/yr Project: All Date: August 15. 1988 Council Notes: Agenda Item No. ~ 1444H:ME:rm 08-15-88 S T A F F R E P 0 R T As you may recall, on May 5, 1988 staff presented to the Committee a proposed agreement for architectural services between the Redevelopment Agency and Urban Design studio. The Committee requested staff to go out for "Request for Proposals". Staff (Moe Estevene) prepared RFP's which were mailed out May 23, 1988. Staff received a total of (5) five proposals from the following firms: . . . . . Leon Armantrout..... ....... Denny Jones................ Gerald Shingleton... ... .... Fie 1 d / P ao 1 i . . . . . . . . . . . . . . . . Urban Design Studio.. ...... Redlands San Bernardino San Bernardino San Francisco Newport Beach Attached for your information is a tabulation of cost comparisons of said firms. Also attached is a copy of the "Request for Proposal" which was mailed. Section II of the proposal is the main area where a cost could be given and also compared. Urban Design is the highest in providing services for section II and Leon Armantrout the lowest. No cost figure could be given for other sections of the proposal since there are no specific projects or data they could tie a cost tax at this time. This would be more on a as-needed basis and by an hourly rate. Staff has worked with Urban Design Studio during the Main Street program and not with any of the other firms. All are capable of providing required services. In the interest of cost effectiveness, staff researched Leon Armantrout, the lowest bidder, and found him to be capable of providing the wide range of services from architectural review to conceptual design required by the RFP. Staff hereby recommends the utilization of services by Leon Armantrout for a period one year for architectural services. The Committee forwarded this item to the Commission with the recommendation for approval to authorize the Redevelopment Agency to enter into an agreement for architectural services with Leon Armantrout. The Commission approved the contract at its July 18, 1988 meeting. Staff thereafter met with the consultant for purpose of executing. During that discussion, Mr. Armantrout brought to staff's attention his concern with paragraph 7, page 4~ 1444H:ME:rm 08-15-88 2 Architect shall obtain and maintain throughout the term of this Agreement adequate errors and omission insurance. A certificate of such insurance shall be maintained on file with the Agency, requiring ten (10) days' written notice to Agency prior to the cancellation or reduction of coverage of said insurance. The cancellation of such insurance shall automatically terminate this Agreement. His concern has been reviewed by staff and Agency counsel and staff believes his request for omission to have merit. He was requested to put his concerns in writing for purposes of asking the Commission to reconsider the action taken on July 18, 1988. Attached hereto and marked Exhibit I is Mr. Armantrout's August 4, 1988 letter. Since the architectural services are intended to be utilized only as conceptual and not for construction, staff and Agency Counsel recommends approval of the aforementioned amendment. 1444H:ME:rm 08-15-88 3 L.eon H. Armantrol ARCHITECT PHONE (714) 793-5293 37 CAMPBELL AVENUE. REDLANDS. CALIFORNIA August 4, 1988 CITY OF SAN BERNARDINO REDEVEIDPMmT AG:ENCY Mee :EBtevene, Director Subject: mRORS AND OMMISSIONS INSURANCE ARCHITE:;TURAL/DPSIGN REVIEW SERVICE5 Dear Mr. :EBtevene: This is in response to the proposed working of the contract you showed me recently referring to the requirement for said insurance. I do not carry such insurance for the following reasons: Its current extremely high cost (on the order of $20,000 per year) is inconsistent with II\V' intent to conduct a more specialized. practice including such services as I have been selected to perform for the agency. This necessitates II\V' keeping II\V' operating overhead down. ft\y belief that the nature of these services would be such that such insurance would be superfluous in that the projects do not involve critical structural design, construction supervision, soils testing, construction contracting, or other high-exposure work. If such services should become necessary I would be happy to bring on board appropriate consultants of whom the subject insurance could be required. I would welcome the oppo~ty to work with you on this endeavor. ~X+-l' ~1.. .::C A G R E E MEN T (ARCHITECTURAL SERVICES) THIS AGREEMENT made and entered into this day of ------------__________ 1988, by and between COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the Redevelopment Agency of the City, a public agency organized and operating under the laws of the State of California ("Agency"), and LEON H. ARMANTROUT ("Architect"). WITNESSETH: WHEREAS, one of the responsibilities of the Agency is "to provide an environment for the social, economic, and psychological growth and well-being of all citizens", (Health and Safety Code Section 33071); and WHEREAS, to fulfill this charge and the other powers and responsibilities of the Agency, Agency from time-to-time needs architectural services; and WHEREAS, Architect affirms that it is competent, trained and experienced in performing such services. NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Architect will provide the following services: A. When requested by Agency provide three architectural conceptual drawings of storefronts to depict a low, medium and high cost for said facade improvements with cost estimates for each at a cost not to exceed the following: 1 (1) Single Bay - under 25 feet wide (2) Single Bay - between 25 to 50 feet wide, up to two-story $ 750.00 $1,250.00 (3) Multi-Bay or Corner Building - over 50 feet wide, two-story or multi- story $2,500.00 All such concepts shall be in color (marker style). In order to reduce these costs, when requested by Agency, Architect will provide one drawing alternative with optional facade items to be included as add-ons. B. When requested by Agency, provide design guideline services for corridor commercial developments as follows: (1) Circulation a. General Standards b. Parking c. Entry Locations d. Circulation e. Landscape/Hardscape f. Screening ( 2 ) Advertising a. General Standards b. Permitted Signs c. Prohibited Signs d. Location e. Illumination f. Materials 2 Signage guidelines will be coordinated with the San Bernardino City Planning Department. C. Such other architectural services as the Agency shall request. 2. It is understood and agreed that in performing the above services Architect may have need to "subcontract II out portions of the work. The parties agree that this agreement is personal to Architect and may only be subcontracted or assigned upon the prior written approval of Agency. 3. In compensation for the services to be provided above, Agency agrees to compensate Architect as follows: A. For services performed pursuant to paragraph 1 of this Agreement, as provided therein. B. For all other services performed pursuant to the fOllowing schedule: Principal $75.00/hr Chief Draftsman $50.00/hr Draftsman $35.00/hr Junior Draftsman $15.00/hr Clerical $20.00/hr Landscape Architect $75.00/hr Graphics Support Person $50.00/hr C. The total amount billed for the term of this Agreement shall not exceed $50,000.00. 4. The term of this Agreement shall be one (1) year from the date first above shown. 3 5. This Agreement may be terminated by either party with or without cause upon thirty (30) days' written notice to the other. Upon such termination Architect shall be entitled to full compensation for fees and expenses outstanding as of the effective date of termination. In addition, all work completed as of that time shall become the property of the Agency. 6. Should the Agency direct that a project already commenced be terminated, Architect shall terminate such work forthwith, but shall be entitled to full compensation for fees and expenses outstanding for said project as of the effective date of termination. In addition, all work completed as of that time in said project shall become the property of the Agency. tv ~. ~ ' pPj ~rj; obtain and maintain insurance. A shall be maintained on prior or of said insurance. of insurance shall automatically terminate this 8. Architect agrees that it will obtain and maintain any required licenses for the services anticipated hereunder from the State of California. Should such licenses be revoked or suspended during the term of this Agreement, this Agreement is thereby automatically terminated. 4 9. All directions from Agency to Architect to commence or terminate any project shall be in writing and signed by the Executive Director or the Assistant Executive Director of the Agency. 10. Archi tect shall be considered an independent contractor for all intents and purposes and shall not be considered as an employee of the Agency. 11. Notice to be given pursuant to this Agreement shall be in writing and shall be deposited with the United States Postal Service, postage prepaid and addressed as follows: TO THE AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North D Street Fourth Floor San Bernardino, CA 92418 TO ARCHITECT: LEON H. ARMANTROUT, ARCHITECT '3 J!!7 Campbell Avenue Redlands, CA 92373 Nothing in this paragraph shall be construed to prevent the giving of notice by personal service. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and date first above shown. COMMUNITY DEVELOPMENT COMMISSION By Chairman By Secretary 5 Approved: AGENCY COUNSEL ARCHITECT: 6 LEON H. ARMANTROUT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AMENDED AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND LEON H. ARMANTROUT, ARCHITECT, RELATING TO ARCHITECTURAL SERVICES. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman and Secretary of the Community Development Commission of the City of San Bernardino hereby authorize an amended Agreement executed on behalf of the Redevelopment Agency between the Redevelopment Agency and Leon H. Armantrout relating to architectural services, said amendments are as indicated on the attached Exhibit "1". Dated: Approved as to form and legal content: AGENCY COUNSEL: B~) The foregoing resolution was duly adopted by the following vote, to wit: AYES: Members NAYS: ABSENT or ABSTAIN: 8-10-88 28 DAB:cm 1 REDEVELO~MENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: JAMES E. ROBBINS, ACTING EXECUTIVE DIRECTOR SUBJECT: NATIONAL DEVELOPMENT COUNCIL CONSULTANT AGREEMENT DATE: AUGUST 5, 1988 Synopsis of Previous Commission/Council Action: 09-09-86 Resolution No. 4923, the Commission authorized and directed the execution of a contract for Services with National Development Council. (COMMUNITY DEVELOPMENT COUNCIL) Recommended Motion: MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A CONTRACT FOR SERVICES WITH NATIONAL DEVELOPMENT COUNCIL, INC. ~~ Signature Contact Person: James E. Robbins Acting Executive Director Phone: 384-5081 Supporting data attached: YES FUNDING REQUIREMENTS: Amount: $50,000.00 Ward: N/A Project: All No adverse impact on City: Council Notes: Date: August 15, 1988 Agenda Item No. It 1486R/JLV/mv August 15, 1988 S T A F F R E P 0 R T The National Development Council was the first company created in the United States to specialize in economic development assistance, and it has been a leader in the field for 17 years. As a private, not-for-profit corporation, NDC's primary objectives are job creation and business development. The focus of their work is assisting the public sector in matching economic development financing needs with the best sources of capital. ......much like investment bankers in the private sector. Their professional staff is drawn from banks and government lending agencies, thus giving them knowledge and experience in both private and public sector financing sources. NDC custom designs and provides training programs in financial packaging to meet the needs of organizations. A pioneer in creating economic development training for both private and public sector lenders, NDC's Economic Development Finance Professional Certification program has set educational standards for the field of economic development. They assist organizations to establish and refine their economic development programs and creatively recapture economic development dollars for reinvestment into the community. With expertise in both private and public sector finance, NDC provides state-of-the-art assistance in techniques used to finance any type of development project. On September 9, 1986, the Community Development Commission entered into an agreement with the National Development Council (NDC) for $50,000.00 to cover services needed for one year (Resolution No. 4923). The action provided for consultant services in the following areas: 1. Industrial Development 2. Commercial Revitalization 3. Community Development Float Financing 4. Small. Business Administration Section 504 Financing 5. Assist in the Preparation and Negotiations of Urban Development Action with HUD. 6. Hotel Financing Mechanisms 7. Downtown Revitalization 8. Transit/Parking Structure 9. Centra 1 Ci ty South Study Area National Development Council (NDC) provides the Agency with a unique range of services. NDC was the lead consultant for the Westside Shopping Center grant. WE had their assistance in packaging the application and they represented us during "negotiation week" with HUD. They processed our first amendment to this UDAG and are now preparing the second. They will continue to playa central role as agreements are completed with the County and with Haagen. 2 1486R/JLV/mv August 15, 1988 AUGUST 15. 1988 STAFF REPORT PAGE 2 They are also actively processing a potential UDAG application for The Club project. The UDAG would be for improvements in the South Valle Project Area west of Waterman. In addition. there is a possibility that a UDAG could be useful for the development of Agency-owned land in Rialto at "G" Street as well as for the Court and "E" Street site. NDC has worked with Main Street Programs. They have had "hands-on" experience in a wide variety of renovation projects across the nation. It is anticipated that NDC can be of great assistance with our Main Street Project. Staff recommends renewal of the Economic Development Consultant Agreement of the National Development Council and adoption of Resolution authorizing and directing the execution of a contract for services. The agreement is for $4.166.67 per month for a total yearly cost of $50.000.00. The agreement can be cancelled on 30 days notice. On August 4. 1988 the Redevelopment Committee recommended the renewal of the Economic Development Consultant Agreement of the National Development Council and adoption of Resolution authorizing and dircting the execution of a contract for services. 3 1486R/JLV/mv August 15. 1988 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A CONTRACT FOR SERVICES WITH NATIONAL DEVELOPMENT COUNCIL, INC. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman and Secretary of the Community Development Commission of the City of San Bernardino are hereby authorized and directed to execute for and on behalf of the Redevelopment Agency of the City of San Bernardino a Contract for Services with the National Development Council, with such non- substantive changes to said Contract as may be approved by the Chairman and Agency Counsel. A copy of said Contract is attached hereto as Exhibit "1" and incorporated herein by this as though fully set forth at length. Dated: Approved as to form and legal content: AGENCY COUNSEL BY~ ./ Denni . Barlow 28 7-22-88 DAB:cm 1 1 2 3 vote, to wit: The foregoing resolution was duly adopted by the fOllowing 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7-22-88 DAB:cm AYES: NAYS: ABSENT or ABSTAIN: Members 2 CONTRACT FOR SERVICES THIS CONTRACT, entered into as of the day of , 1988, by and between THE COMMUNITY REDEVELOPMENT COMMISSION (the "Commission") and THE NATIONAL DEVELOPMENT COUNCIL, INC., a not for profit corporation, organized and existing under the laws of the State of New York ("Contractor"). WITNESSETH WHEREAS, the Commission is undertaking economic activities pursuant to the Housing and Development Act of 1974, Public Law 93-383, and General Economic Development Activities (the "Act"); and WHEREAS, pursuant to such Act, the Commission is undertaking certain activities necessary for the planning or execution of an Economic Development Project (the "Project"); and WHEREAS, the Commission desires to engage Contractor to render certain technical advise and assistance in connection with certain undertakings. NOW, THEREFORE, the parties hereto do mutually agree as follows: 1 1. Scope of Services: Contractor shall perform all of the necessary services under this Contract in connection with and respecting the following: 1. Assist in City Industrial Development. 2. Assist in Commercial Revitalization and Commercial Development. 3. Assist in Community Development float financing. 4. Assist in Small Business Administration Section 504 financing. 5. Assist in other creative financing, utilizing federal agencies and other nonprofit vehicles. 6. Assist in the negotiation and closing of UDAG's with HUD. 2. Time of Performance: The services of the Contractor are to commence on August 1, 1988, continuing thereafter for a full calendar year, and shall be undertaken and completed in such sequence as to assure their expeditious completion in the light of the purposes of this Contract. 3. Compensation and Method of Payment: The Commission will pay to Contractor the amount of Fifty Thousand Dollars ($50,000.00), which sum shall constitute full and complete compensation for Contractor's services hereunder. 2 Such sum will be paid in the following manner, in every case subject to receipt of a requisition for payment from Contractor: (a) Four Thousand One Hundred Sixty-Six Dollars and Sixty-Seven Cents ($4,166.67) a month payable at the beginning of each month. 4. Terms and Conditions: This Contract is subject to and incorporates the Provisions attached hereto as Part II - Terms and Conditions (Form H-621B) and Contract for Professional Services, Community Development Program, Part II, Terms and Conditions Form 6/77. 5. Termination: This Contract may be terminated by either party upon thirty (30) days written notice. In the event of termination, the fee payable to Contractor will be prorated to the end of the thirty (30) day period and the Commission shall thereafter have no further payment obligation. 3 IN WITNESS WHEREOF, the Commission and Contractor have executed this Contract as of the date first above written. THE NATIONAL DEVELOPMENT COUNCIL, INC. By: THE COMMUNITY REDEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA By: CHAIRMAN By: SECRETARY Approved as to Form and Legal Content By: 4 REDEVELv.AENT AGENCY - REQUEST FOR COMM1~~ION/COUNCIL ACTION FROM: James E. Robbins. Acting Executive Director SUBJECT: PROPER RELATIONSHIP OF PACs/CACs TO THE COMMISSION & COUNCIL DATE: August 9. 1988 Synopsis of Previous Commission/Council Action: 88-01-18 Set joint public hearing. 88-03-21 Held joint public hearing on role of PACs/CACs. (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ADOPTING A POLICY STATEMENT AS TO THE ROLES OF THE CITIZENS ADVISORY COMMITTEES AND PROJECT AREA COMMITTEES AND THEIR RELATIONSHIP TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. ~/~~ ~ S i(o/"a ture Contact Person: James E. Robbins Phone: - 384-5081 Supporting data attached: Yes FUNDING REQUIREMENTS: None Ward: ALL Project: ALL No adverse impact on City: Date: 08-15-88 Council Notes: Agenda Item No. JR:JH:rm:1440H 08-15-88 /3 S T A F F R E P 0 R T On December 29. 1987. R. Ann Siracusa. Director of Planning. received a letter from David A. Lechuga. Chairman of the Northwest Project Area Committee (PAC) requesting that an oral presentation be given to the Northwest PAC concerning a proposed project for the Sixth Ward prior to the item being heard by the Planning Commission. Mr. Lechuga's request was based on the fact that if the Northwest PAC was permitted to contribute its concerns and/or recommending approval of any proposed project as a part of the City approval process the Planning Commission would then have citizen input to consider as a part of its decision process. Staff is concerned that such a presentation and/or input will set an inappropriate precedent for other proposed projects in redevelopment project areas. Staff estimates that if each new development proposed is required to obtain a recommendation from a PAC/CAC prior to the normal City process for review and approval an additional two to four weeks delay could occur. On January 18. 1988 the Mayor and Common Council and the Community Development Commission moved to set a Joint Public Hearing at 11 :00 a.m. on March 21. 1988 to consider the role of CACs and PACs and their relationship to the Redevelopment Agency. On March 7. 1988. to allow more citizen participation. the time of the public hearing was changed to 5:00 p.m. On March 21. 1988 at the Joint Public Hearing. the City Attorney. Redevelopment Agency staff and Planning Department staff were directed to review the recommendations made and the concerns expressed at the hearing. A full report was to be made to the Community Development Commission through the Redevelopment Committee. Special emphasis was to be given to the establishment of better communication between the Northwest PAC and the Redevelopment Agency. The Agency attorney prepared the attached background memorandum. proposed resolution and policy statement to fulfill the aforementioned Community Development Commission directive. The Redevelopment Committee and staff recommend adoption of the attached resolution. JR:JH:rm:1440H 08-15-88 C I T Y 0 F SAN B ERN A R D IONT INTEROFFICE MEMORANDUMJ~~ JH r/iE TO: REDEVELOPMENT COMMITTEE CL L\/ :? --~ FROM: DENNIS A. BARLOW Sr. Asst. City Attorney C:::_Lf___ @i;;:--- . ~- ~ ~-~-"// ---;--- - --.,..- ~ ( bR'G.~j ROUTE COpy L DATE: July 11, 1988 SUBJECT: Project Area Committees and Citizens Advisory Committees ----------------------------------------------------------------- At the Council and Commission meetings of Monday, March 21, a joint public hearing was held to consider the relationships of the Project Area Committees and the Citizens Advisory Committees to the Commission and Council. The Council/Commission asked that this office review the relationship and report back to the Redevelopment Committee. As the hearing progressed, the only representatives who spoke were those of the Northwest PAC. It seemed clear that the basic issue was one of communication. Certainly, these community-based groups, be they elected or appointed, want to know that they are not ignored and that what they have to say is listened to and considered. Conversely, both the Commission and the Council have an interest in assuring that the City process is not unduly delayed and that these community groups take the appropriate responsibility for knowing what is going on. Since the date of the above public hearing we have been working on an agreement between the Community Development Commission on behalf of the Redevelopment Agency and the City to provide planning services both to the Agency and to the PAC's and CAC's. This Agreement as presently drafted outlines the services to be provided by the City. Some of these will be at a cost and others will be for no charge. It also notes that the CAC's and PAC's have an obligation to timely review the list of pending projects provided in order to schedule clarification meetings sufficiently in advance so as not to delay the process. The current proposal is to provide a specified contact person in the Planning Department to provide the bulk of these services, with other staff members to be utilized as needed. The Agency would pay $60,000 for the anticipated services. It is anticipated that if an agreement of this type is approved, that the concerns expressed by the speakers at the public hearing should be satisfied. Admittedly, it would not provide for a full-time staff Planner, nor for a representative of the Planning Redevelopment Committee July 12, 1988 Page Two Department to be at each meeting; but, it does provide for a process to enable the Committees to receive information relative to items of interest. It also places a duty on the Committees to review the pending projects for selection. It is therefore recommended that the Redevelopment Committee recommend to the Commission that it adopt the staff recommendations relative to the roles of the Citizens Advisory Committees and the Project Areas Committees (see attached proposed resolution) and not substitute the language proposed by David Lechuga (see attached). BARLOW City Attorney DAB:cm 1 2 3 4 5 6 7 8 9 10 11 12 13 14 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ADOPTING A POLICY STATEMENT AS TO THE ROLES OF THE CITIZENS ADVISORY COMMITTEES AND PROJECT AREA COMMITTEES AND THEIR RELATIONSHIP TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. WHEREAS, state law provides for the establishment of Project Area Committees in Redevelopment Project Areas; and WHEREAS, both Project Area Committees and Citizen Advisory Committees have been established in various Redevelopment Project Areas within the City of San Bernardino; and WHEREAS, such Committees provide valuable community input into the actions of both the Community Development Commission and the Mayor and Common Council; and WHEREAS, it is essential that such input come early enough 15 in the process to not unduly and perhaps illegally delay action 16 17 18 19 20 21 22 23 24 25 26 27 28 on pending projects, and to assure that such input can be thoroughly considered by the decision-making body; NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of San Bernardino that the Policy Statement attached hereto as Exhibit "1" is hereby approved and adopted. Dated: Approved as to form and legal content: AGENCY COUNSEL B~~ The foregoing resolution was duly adopted by the following 7-11-88 DAB:cm 1 1 2 vote, to wit: 3 AYES: Members 4 5 NAYS: 6 7 ABSENT or 8 ABSTAIN: 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7-11-88 2 DAB:cm SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Commission, DO and correct Secretary of the Community Development HEREBY CERTIFY that the attached Resolution is a true copy of Resolution No. adopted , 19_, by the Community Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES MICHAEL MAUDSLEY TOM MINOR VALERIE POPE-LUDLAM NORINE MILLER DATED: Check Appropriate Box YEAS NAYS ABSENT ABSTAIN 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=.1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 , 1988. [SEAL] SBE00088/2356S Secretary of the Community Development Commission of the City of San Bernardino POLICY STATEMENT ROLE OF CITIZENS ADVISORY COMMITTEES AND PROJECT AREA COMMITTEES AND THEIR RELATIONSHIP TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 1. All Redevelopment Agency induced projects, should be presented to the appropriate citizens group as an information item at such time as appropriate. It is the intent of this recommendation that items will be presented to the citizen group, if at all possible, prior to submission to the full Commission for formal approval. There will be times, however, when due to confidentiality and/or urgency of matter, a full representation before a citizens group cannot be made. If and when contractual limitations for the provision of planning services are reached, the Commission will still carefully review and consider any additional requests for such services. 2. Citizen groups, upon presentation by Redevelopment Agency of particular Agency induced development agreement, should consider making a recommendation to staff and/or full Commission on such matter. The recommendation of the citizens committee, shall be presented to the Redevelopment Committee and full Commission, if received prior to their action. Agency staff should make every effort to include within their staff report to the Redevelopment Committee and Commission the recommendation of the appropriate citizen group if one is made. 3. The recommendation of the citizen group shall be considered by the Redevelopment Committee and full Commission. The Community Development Commission is charged with the responsibility of making final determination on all issues. They mayor may not choose to follow the recommendation of the citizens group. 4. Redevelopment Agency staff should make every attempt to keep citizens groups advised of issues affecting their project area. Staff should provide to the citizens group monthly Development Activity Reports, Quarterly Updates and Annual Reports. Staff should also present as soon as possible to the appropriate committees copies of agendas for Planning Commission, Building Commission and Mayor and Council. Revised 8/5/88 '. .... I ~. PROPOSAL BY DAVID LECHUGA AS A REPLACEMENT PARAGRAPH FOR PARAGRAPH 1 OF THE POLICY STATEMENT The Agency and Planning Department shall cause a member of its staff to be present at each Advisory Committee meeting of which the Agency and the Planning Department are given adequate notice and a request for such presence by Advisory Committee, so that information regarding new proposals and ongoing projects (including information in the hands of staff regarding: eminent domain proceedings, development agreements, tax increments, proposed zoning changes, variances, building permits, grants, employment opportunities, notice of preparation of emergency (sic) impact reports and negative declarations, plans for residential facilities, plans for replacement housing, and all other policy matters affecting the residents, businesses, and community based organizations) [may be presented and considered]. The above information will be provided to the Advisory Committee but not more than once per month, unless agreed to by the Director of the Agency and/or Planning Department. All Advisory Committee recommendations can be made to the Agency Redevelopment Committee, Agency Board of Directors, Planning Commission and/or City Council. All recommendations by the Advisory Committee shall be made prior to a decision made by the above decision- making bodies. REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: PRE-PARTICIPATION AGREEMENT EXCLUSIVE RIGHT TO NEGOTIATE - EMPIRE DOME CORPORATION - CCS DATE: AUGUST 9, 1988 Synopsis of Previous Commission/Council Action: None (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CTY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A PRE-PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AND EMPIRE DOME CORPORATION FOR THE DEVELOPMENT OF A SPORTS AND ENTERTAINMENT FACILITY WITHIN THE CITY OF SAN BERNARDINO. tI~~ Sign~e Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: 1st FUNDING REQUIREMENTS: N/A Project: CCS Date: August 15, 1988 Council Notes: 4242G: SG: sm 08-15-88 Agenda Item No. ~ S T A F F R E P 0 R T Staff and the Redevelopment Committee recommend that the Community Development Commission authorize the execution of a Pre-Participation Agreement with the Empire Dome Corporation. BACKGROUND On May 5, 1988, Redevelopment Agency staff met with representatives of the Empire Dome Corporation who expressed interest in constructing, owning and operating a 15,000 to 20,000 seat sports/entertainment domed arena in the inland empire area. At that time three (3) sites were under consideration: 1. National Orange Show 2. Central City South Overlay Zone west of "G" Street to the 215 freeway between Rialto Avenue and Mill Street 3. Uptown Subarea B Staff prepared a site analysis and the Empire Dome group decided that the CCS location was the preferred location due to: . Relatively large amounts of vacant land . Good visibility from the freeway . Good accessibility to 1-10 and 1-215 . Proximity to hotels/motels . Reasonable land costs The arena will be a domed facility similar to the Tacoma Dome in Tacoma, Washington. The dome itself will occupy approximately six acres with an additional 30 to 60 acres required for parking. Final parking requirements will be determined after completion of a traffic study. The proposed dome will contain 15,000 to 20,000 seats and will be approximately 440 feet in diameter and 140 feet high. The dome will be constructed with glue laminated timber beams. Total estimated construction costs are $40 to $50 million dollars. The proposed dome will be a multi-use facility that will have the capacity of presenting several types of events: . Spectator Sports (basketball, soccer, track, ice hockey, boxing, tennis, rodeo). . Shows and Performance Events (ice shows, horse shows, circuses), . Concerts and Live Musical Performances. . Public meetings (religious, political, conventions, banquets). . Exhibition space. 4242G:SG:sm 08-15-88 2 The developer has assembled a design and planning team consisting of Lyn H. Messenger, AlA (architect for the Tacoma Dome) and Phillip, Brant, Reddick, planners and architects who have met with staff and City department heads. Staff has spoken to Tacoma, Washington City staff who recommend Lyn Messenger highly. The developing entity, Empire Dome Corporation, owned 95 percent by Ron D. McMahon and Don Oliphant. Ron McMahon has a net worth of $5,252,891 and has over 15 years experiences in developing over $50 million worth of commercial and residential projects. Don Oliphant has a net worth of $9,265,564 exclusive of his interest in Knott's Berry Farm which is a private partnership of which he is managing partner. Oliphant also has over 15 years experience in real estate development. See attached for some of the major projects which have been developed by McMahon/Oliphant. During discussion with the developer they expressed interest in master developing the majority of the overlay zone north of Mill Street. The developer is now preparing a phased master plan which will include residential, commercial, retail and office uses (See attached map). To date the developer has expended approximately $23,000 in planning, architectural, legal and engineering fees and is reluctant to spend additional funds for master planning, environmental impact reports, feasibility studies, traffic studying and soil reports without some assurance that the Redevelopment Agency will continue to negotiate in good faith. It is estimated that an additional $50,000 to $100,000 will be spent before it can be conclusively determined that the project is viable and an agreement between the Redevelopment Agency and the developer can be negotiated. The developer has asked for a 270 day Exclusive Right to Negotiate (see attached Pre-Participation Agreement) with the Redevelopment Agency during which time the above mentioned studies will be completed. The Exclusive Right to Negotiate will contain time frames under which the developer is obligated to perform (see attached). These will be closely monitored by staff to insure compliance. Prospective lenders are reluctant to even do a preliminary evaluation of the project without some type of written agreement between the Redevelopment Agency and the developer. The Exclusive Right of Negotiate will encourage the developer to proceed expeditiously in obtaining the required studies and will enable the developer to explore possible financing sources. The Agreement provides the developer control design standards, site analysis and early data collection. The City will control the Feasibility Study, EIR and review of Specific Plan. The developer has agreed to pay for the Feasibility Study (estimated at $30,000) and will participate in outlining the Scope of Services and RFP selection process. In the event the study determines the project is not feasible, the agreement shall terminate and developer will have ultimate ownership of the Feasibility Report. The extent of the Redevelopment Agency assistance and participation in the project has not been determined but will be evaluated and negotiated during the term of the Exclusive Right to Negotiate. 4242G:SG:sm 08-15-88 3 The cities of Ontario, Grand Terrace, Highland, Colton and Redlands have expressed interest in having the Dome located in their areas. Construction of the Dome over an estimated l8-month period will have a substantial positive economic impact on the City's economy. Substantial tax increment, sales taxes, utility taxes and jobs (estimated 200 to 300 part time) will be generated when the facility is completed and operating. It is also anticipated that the project will provide approximately 10 to 20 permanent jobs for the daily operations of the facilities. The Dome will be operated under contract by a professional management firm which will be selected through an RFP process. Not only will the economic benefits to the City be substantial but this is the type of facility that will draw regionally will "put San Bernardino on the map". The City could be competitive with other cities for nationally televised events such as booking, ice shows, the Harlem Globe Trotters, and rodeos. The possibility could exist for attracting an NBA team. 4242G:SG:sm 08-15-88 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A PRE-PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AND EMPIRE DOME CORPORATION FOR THE DEVELOPMENT OF A SPORTS AND ENTERTAINMENT FACILITY WITHIN THE CITY OF SAN BERNARDINO. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman and Secretary of the Community Development Commission of the City of San Bernardino are hereby authorized and directed to execute for and on behalf of the Redevelopment Agency of the City of San Bernardino a Pre- Participation Agreement between the Redevelopment Agency of the City of San Bernardino and the Empire Dome Corporation for the development of a sports, entertainment and commercial facility within the City of San Bernardino, with such non-substantive changes to the Agreement as may be approved by the Chairman and Agency Counsel. A copy of said Agreement is attached hereto as Exhibit "1" and incorporated herein by this as though fully set forth at length. Dated: Approved as to form and legal content: AGENCY COUNSEL B~k~ 7-21-88 DAB:cm 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The foregoing resolution was duly adopted by the following vote, to wit: AYES: NAYS: ABSENT or ABSTAIN: 7-21-88 DAB:cm Members 2 SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Commission, DO and correct Secretary of the Community Development HEREBY CERTIFY that the attached Resolution is a true copy of Resolution No. adopted , 19 , by the Communi ty Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES MICHAEL MAUDSLEY TOM MINOR VALERIE POPE-LUDLAM NORINE MILLER DATED: Check Appropriate Box YEAS NAYS ABSENT ABSTAIN 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=.1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 , 1988. [SEAL] SBE00088/2356S Secretary of the Community Development Commission of the City of San Bernardino PRE-PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND EMPIRE DOME CORPORATION FOR THE DEVELOPMENT OF A SPORTS AND ENTERTAINMENT FACILITY WITHIN THE CITY OF SAN BERNARDINO THIS AGREEMENT, entered into effective the day of , 1988, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic, hereinafter "Agency", and EMPIRE DOME CORPORATION, a California corporation, hereinafter "Owner", constitutes the agreement of the parties as to the matters set forth hereinafter. WITNESSETH: WHEREAS, there is certain property located within the City of San Bernardino generally described as (the "site"), which Agency desires to have developed into a sports and entertainment facility with onsite parking facilities and attendant commercial, retail and residential development (the "Project"); and WHEREAS, Owner represents that it has the experience and expertise to develop upon the Site such development, including onsite parking, to meet the Agency's goals for such development. NOW, THEREFORE, the parties hereto agree as follows: DAB:cm August 9, 1988 1 1. For the period commencing with the signature of the parties hereto, and continuing for 270 days thereafter, unless sooner terminated in accordance with the provisions set forth hereinafter, Agency and Owner shall negotiate exclusively with each other and in good faith toward the preparation and execution of an Owner's Participation Agreement ("OPA") between the parties, for the development of a suitable sports/entertainment, commercial, retail and residential facilities upon the site, or upon any other suitable site within the City. 2. This Agreement is intended to be preliminary in nature, and does not create and is not intended to create any interest in the land described. The parties hereto agree that this Agreement is not specifically enforceable. Any breach of this Agreement shall give rise only to an action for damages, and only then in the absence of good faith. 3. The parties set the following as a tentative action schedule, to be complied with substantially, unless otherwise mutually agreed: a. Within ninety (90) days of the date of execution hereof, Owner shall provide Agency with soils reports (including liquefaction, and toxic and hazardous contaminants). b. Within ninety (90) days of the date of execution hereof, Agency shall provide Owner with a marketing and financing feasibility study for the sports and DAB:cm August 9, 1988 2 entertainment facility at a cost to be paid by Owner. The scope of such service shall be mutually agreed upon. Whether or not this project proceeds to completion, Owner shall have the right to full use, either at this site or elsewhere, of the work product of such study, or of the components of such study. Owner may contract with the entity conducting the feasibility study for studies for other areas. c. Within one hundred and twenty (120) days of the date of execution hereof, Owner shall provide Agency with a pro forma, proposed conceptual plans and specifications and such other materials as may be needed by the Agency to review the Project as proposed. The pro forma shall contain adequate information to enable Agency to obtain a full economic analysis from its economic consultant. d. Within one hundred twenty (120) days of the date of execution hereof, Agency shall submit to owner a first draft of its proposed OPA. e. Within two hundred forty (240) days of the date of execution hereof, Agency Staff and Owner shall submit a final proposal to the Redevelopment Committee of the Agency. 4. In order to carry out the foregoing tentative action schedule, Agency and Owner covenant that they will respond forthwith to any and all reasonable requests for additional information by the other party, and agree that any failure to provide the information requested within ten (10) August 9, 1988 3 working days from the date of such request shall constitute grounds for immediate termination of this Agreement, unless additional time is granted by the requester. Termination under this paragraph shall be on written notice served on the opposite party. 5. Should the financial and marketing feasibility study to be conducted pursuant to Paragraph 3.a. conclude that such development is not feasible then either party shall have the option within thirty (30) days thereafter to terminate this Agreement. 6. The following items shall be discussed during negotiations in an attempt to arrive at a mutually agreeable OPA: a. The providing by Owner of a model prior to completion of an OPA. b. Owner will have the right, subject to such requirements as may be imposed by third parties, such as the City of San Bernardino or the County of San Bernardino, to increase the project size during preliminary discussions or after execution of an OPA. c. Owner shall submit a complete marketing package, including how it intends to promote and market the site, which information shall include a description of the types of events anticipated for the sports and entertainment facility. d. Negotiation of performance bond to guarantee DAB:cm 4 August 9, 1988 completion of construction, or some other mechanism to assure that construction is proceeding as planned, and that adequate financing remains at all times available for completing the project, or other means are arrived at to satisfy Agency's concern that this project will be satisfactorily completed. e. Agency participation in profits based on Agency participation in expenses, if appropriate. f. Control of parking facility, and provisions for including controls over charges for parking, and Agency participation in construction expenses for the parking facility. These matters shall include whether any obligation will exist for making public parking available. g. Maintenance standards and adequate security provisions. h. Owner shall identify early in negotiations any Agency assistance which Owner requests from Agency, including any assistance in obtaining tax-exempt financing, low-cost financing, zoning changes, liquor license approval (conditional use permits may be required in some circumstances) and any other matters which will require special considerations from Agency or from the City of San Bernardino. i. Assurance that Owner will be bringing new tenants into the City of San Bernardino, unless transfer of present occupants of buildings within City are brought into this complex only after Agency review and consent. Some DAB:cm August 9, 1988 5 safeguards against "stealing tenants" from other businesses or locations in the City of San Bernardino shall be devised. j. Owner shall provide a tenant-mix plan, and a leasing schedule, with letters of interest from proposed tenants and other evidence of feasibility of the proposed development. Agency is not interested in a facility which will be vacant. k. Provisions in lieu of development, if any, for any reason, Owner fails to complete development within the time specified. 1. Provisions ensuring against holding for speculative purposes, including prohibitions against transfers of interest without Agency consent. Similar prohibitions against change of principals of developing entity and the development team. m. Participation by Owner in any ongoing or subsequently enacted program having general public benefit in the area, including, without limitation, Agency programs regarding streetscape, lighting, community "themes" in building design or maintenance. n. Owner shall demonstrate a commitment for construction financing of the sports/entertainment facility. o. Owner shall develop an operation package designating what entity shall operate the facility upon completion and the requirements of such operation. p. Provisions relating to development of the area DAB:cm 6 August 9, 1988 surrounding the sports/entertainment facility and related parking. q. Provisions relating to which of the parties will bear the land acquisition cost. r. All environmental documents shall be prepared or caused to be prepared by the City at the cost of Owner. 7. The items listed for negotiation are not necessarily the only items which will be discussed in the negotiating process. Agency and Owner shall negotiate exclusively with each other and in good faith toward completion of an Owner's Participation Agreement in such form as to grant to the parties the greatest assurance possible that the development will be operated in a successful manner and contribute to the greatest possible betterment of the City of San Bernardino. 8. The parties acknowledge and understand that financial incentives of the Agency come from the tax increment developed in the specific redevelopment area and any such incentives depend on sufficient tax increment being DAB:cm August 9, 1988 7 available. IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first set forth above. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, CA 92418 EMPIRE DOME CORPORATION a California corporation 301 Vanderbilt Way, #245 San Bernardino, CA 92408 By By Chairman By By Secretary Approved as to form and legal content: AGENCY COUNSEL: B~~) DAB:cm August 9, 1988 8 \ 1 J 1 ( J l J I I I [ I. I ~/OUHfANI' fK)PElIT!ES t-icM::1hon/Oliphant Properties was organized for the sole purpose of developing quality commercial and residential projects in the Western United States. "Ole enphasis contirues to be on excellencet durability and value in the marketplace. Certain projectst such as industrial/warehousing are Wilt for . sale t while others are developed to establish longer tenn ownership for the conpany's principals and the joint venture partners. The corrpany contlrues to be ~ by its f()l.,Jl'Vjing partner~ t konc l~ ~. :A.;~LhJr and Don W. Oliphant t who have been frten:is SRi bJsiness partners for over lS years. Each takes a vital interest in all aspects of the conpany bJsiness w.ch includes land acquisitiont construction and algOing property management... Ronald M::Hahon functions as the c:orrpany Presidentt nnintaining responsibility for all the diverse operations and activities of the finn. Don Oliphant acts as the Chief Financial Officer aro is the vitalizing factor in the acquisition of funds and locating joint venture partners. The conpany tk,s a c:orrprehcnsive approach to the dcvelopm:mt tusiness, rot. - . often found in the industl')'. It begins with opportunity-identification :.u'rl land acqusition by an onstaff licensed real estate broker. The asssociated firm of ~n Development t a licensed contractor t provides the constructior, services. The carpany's diverse projectst ranging from a senior congregate care facility, a lS-dealer auto plaza (one of the largest in California) and a 20tOOO seat sports arena in Orange CountYt are only a few of toe d}~c develo?nents in which the corrpany is involved. Although t-1cf-bhon/Oliphilnt Properties tk,s highly skilled staff personnel, th~ principals of the conp"ny maintain a tightly-controllcd, hands-on rmnagerrcnt style Wlich provides the b!st envirorncnt for Ileeting and reaching the ch.:.lllc'noL: of the 1990's. In addition, nost of the projects developed by the corrpany are r.anaged by the firm fopowing the construction phase. lhis approach provides for a great deal of contTOl and efficiency ~tdch translates into a better overall development for both owner/~rtners and tenants. \~rking rcalistic~lly within prevailing government~l attitudes and econor.Jc conditions, ~~'bhon/Oliphant Properties ~,s proven its capabilities to "da?[ to rapidly changing rmrket corrlitions. It is this sensitivity to the rnrkcc- pl~ce that has been the c~~ny' s greatest strength aoo has helped ~~t>bhon/ Oliphant Properties st~y in the van~,rd of the business co~~ty. t RON MCMAHON Ronald D. McMahon serves as Pr8Sldent and co-founder d McMahon/Oliphant Prop- ertl8S. He functions as the ChIef C)peratng Offcer d the company which is owned IOleIy by hllT\ and Mr. Oliphant. f Mr. McMahon has been " personIIIy InVOlved as an . "'Wf'ler and develOper of :orne produong real estate .or 8Imost flfleen years. Under his d1recton over 5SO millIOn wonh of commerCIal and re&ldentlill projects have been developed and con. structed through comp.3ntCs 01 partnerShlp5hehas formed These have .nc:Iuded Single, family tracts. prd8SSlOl'la1 offICe buildmgs. shopptng centers. medcal offICe buildings and indUSlr.aJ prOjeCtS Mr. McMahOn llse admln. isters McMahon Develop- ment Company. whICh IS the lICensed contractor and operational arm 01 the devel. opment process. Oualff.ed support personnel prOVIde lull servICeS In these areas. The McMahOn Partnership. an arChitecturll and planning ftrrn is owned and operated by Mr. McMahon. and hIS 4 DON OLIPHANT : two partners This hrm was lOunded by Mr. McMahOn n.ne years ago and lunctlOnS as a separate enbty with a 118ft d approxmately twenty professionals doing work in commercial and II'lIlltutlOl'\al buildll'\QS. large residentlill complexes. large scale rec:reatlOl'lal prOflClS. and medcal fac:illtl8S. Ron McMahon earned hiS Bachelor of ArChitecture degree WIth hOnors Irom the UnIverSIty of Southern CallI. orn.a. minot Inn In math. IIlllilory and Uul>If"-~ He 1$ a lICensed arChitect In the Itales 01 Caldornta. Idaho. and florida and IS I regIStered Caldorl'\l8cxy11radOr Presenlly hIS memberships Include the AmerICan Institute of ArChitects. Orange County Chapter AmerICan Institute 01 ArChitects. and the Shertfl'sAdVlSOfy Councd, Mr. McMahOn IS currently the PreSIdent 01 the Board 01 Otrectors 01 the YMCA TusltnlSanta Ana Branch and on the Board of Otrec:lors 01 both the Lincoln Club 01 Orange County and Lde Mll'\tStrle5. He enpys all outdoor sportS actlvrtl8S. As co-tounder of McMahonI Obphant PropertIeS. Don OlIphant. prmarily respon- IIbIe tor the ma,or fll'\8nClal relabonshlps which have made the company II occess- tuI. Under this leadership. joint venture and lender relationships have been developed and fostered whICh have led to 1he solid growth d the pannershlp. Mr. Oliphant takes an actIve role 11'\ III pro,ect deosions and management. HIS hnal'\Cl8l strength and active c:ommul'\lly leadershiP hdvc been Vltal factors 11'\ the success of the company. In adddlO/'l to Ul~izing his management expen.se for McMahonIOIipt\ant Proper- ties. Don Oliphant is a general panner in Knott's Berry Farm and has been respons.bIe tor broadening the scope 01 the company and c:reallng opportul'\llle5 for dwerSlflca. ton As the grandson 01 Walter Knott. Mr Oliphant has had the unoque oppor- tunrty or grOWIng up In a tam~y-owned bus.ness and Iearl'\lng flt51 hand the II'\tn- CICIes of a far ranging and complex operatIOn. Don OlIPhant is the Manag.ntJ Partne' o~ Kpc~.'", !)err,' Farm Foods a~u nas been nnovatrve 11'\ new prOduct development and marketing programs which have led to dynamtc !ncr!~ In sales ~y Knott's speoaJlly prOd. UCIS are highly rflaJgnlZed and eniOyed by people all Oller the world Don Ohphar.: was graduated from the Un,- verslty of Southern California WCh a degree In BUSIness Finance. HeservedasCaota.n in the United States Manne Corps WIth a tour 01 duty ,n Vietnam and was aecorated _ Wllh the Navy CommendaltOn Medal and Purple Hean, HIS love of the outjoors and sports rOund out hi!; acIlve ME:. Mr. OIlphan:'s com!TIllment to the commu,1Ity and publiC atta rs IS evidenced by h.s involvement on the follOWing Board of Directors PaCific Naltonal Bank Shenffs AdVisory Council Orange Co U.S OlympiC Commtnee Internahonal Jelly & Preserve Assoc,al,or. Chddren'S Hos;:-,tal Of Orange Cour:y Paollnos Nnencanlsm Educational League Tip Top Corporalton New WeSt Venture CaPital Company Wine & I=ood SOClet i' '")rf'~I~J.~ :'_'IJ'l' P'e' )rrr,ng titS :;"" ':'.1 Cc>Challmar> ot Special Gifts Comrnt!lee ~ f l" I . ~ HUNTINGTON MEDICAL PLAZA FASADENA This venture project consists of a four-story, 55,633 square foot medical office building, a one-story, 14,173 square foot commercial/retail area and a 325 space, three-level parking structure, connected by a richly landscap~d multi-tieT~d plaza. Huntington Medical Plaza is ideally located across from the busy Huntington Memorial Hospital. State-of-the-art communication and computer link-up services between the physicians' private offices ano the hospital's labs, diagnostic services, and patient records departments has been carefully planned into the integral design and ef- ficiency of the building, as well as state-of-the-art energy efficiency programs. Huntington Medical Plaza is 100% leased, and many of the tenants are also limited partner/investor in this project. ( HUNTINGTON MEDICAL PLAZA PASADENA, CALIFORNIA (' PROJECT NAME: fob 6.g1on Medical Plaza J PI I r :'18, CeIifomia DESCRIPTION: This quIIity mecbI ~ jId ~..d a.wlDry 86,5OOequntaatmedical f8cIity wIh II" 1111 C\l( lie d 12,500 8ql.88'" of com- rnerciallp8C8 end a 325 car parking 81ruc1ure. A precast conaete exterior, enhanced by mUtipIe out. cbor plazas, give a aJbstantiaI urban charac- ter to this in-city project. SIZE: ",000 gro&8 equare feet ARCHITECT: The McManon Partnership DEVELOPMENT ENTITY: Huntington Medical Plaza. Ltd., a li'nited part. nership comprised of ( ~Prcper- ties as general partner in . conjunction with mlitiple investor-limited partners, many of whom are also tenants. .J ~ ( ~. f ~'1 Carmel Retirement Village . This quality residential facility for active, healthy individuals, over 55 years old, is located on a 3.5 acre site, across from Mile Square Park, in Fountain Valley, California. The project offers numerous special services, including meals in a central dining room, spaci~us lounges' and program facilities, 24-hour security, maid service, and free transportation. . . " The facility was sold April 21, 1988. t [ ..." - ~ \,- ~ - - ..- ~. ,;.. -.: :.. . - 'r - -_ - i ... .~-~---- .-/ . 4 .' CARMEL RETIREMENT VILLAGE FOUNTAIN VALlFf. CALIFORNIA --....;..-:::: PROJECT NAME: QwmeI Rt6amen VIage fcu1Iain VeIJei. CA -) DESCRIPTION: This qusIy.... ~ tIIc:My, br a.e. heIIIhy individuals CMIr 8) )Wn old. is IocaIIed on a 3.5 acre _ across from Mia Squn PIn The prc;ect ofters runerous spec:iaI Bvic:es induding tvee rnetl.HIeleded rneaIs in a oenIr8I dining room. ~ lounges and ~ facNies. 24-hour ~ maid service. and free van trallSpOr18b:)n. SIZE: 189-unils ranging from :B) sq. ft. t:l550 sq. ft. ARCHITECT: The w..w..on PImel !tIip C DEVELOPMENT Carmel Vt8ge Associates. ENTITY: A California liniled Partnership. McMahon-Ol~ . Properties, Genera Partner ) c. WEST ACACIA APARTMENTS . A well-designed 200 unit garden apartment complex, conven- iently located at the cornder of Sanderson an~ Acacia Ave- nues, within the City of Hemet. The project offers resi- dents a selection of one, two or three bedroom units and many amenities, including tennis court, pool, and large open-landscaped areas. Covered parking is provided for automobiles, and many units have "tuck in" parking. ,; .- . .' This growing city now has a population of almost 30,000, and the surrounding San Jacinto Valley has a population of almost 70,000 people. Hemet has been changing from an exclusive retirement community to a more mixed-resident population. The balance of retirees to service/retail is now 50/50, giving rise to the need for greater mixed-use projects. The project was built in two phases. Phase I - 116 units; Ph~se II - 84 units. Phase I opened May 1, 1987; Ph~sc 11 opened January 1, 1988. DIAK>ND BAR RANCH CENTER . A most unique 60,000 square foot commercial and retail center, designed around a ranch-type theMe, complete wich river rock masonry, wood trim/frame windows and baru-wuod- type siding. The interiors utilize exposed wood bea~ con- struction wherever practical, in order to enhance the cha- racter. A large windmill has been constructed in the cen- tral portion of the site to provide the identity symbol for the center. .: . . f The center is comprised of specialty stores, three res- taurants and a Farmers Market. Anchoring the southwes- tern portion of the center is Christian's Farmers Market. A full service specialty market specializing in fine meat, poultry, fresh fish, quality produce, bakery products, dairy products, plus a complete delicatessen line a~d some health food merchandise. Prices are comparable to those at major supermarkets. The other major traffic-drawing tenant is MacArthur's Restaurant. MacAythur's is Diamond Bar's first quality themed-type entertainment and dining restaurant. The eight existing Mac-Arthur-owned restaurants are all well- known for the excellent food, good service and desirable / atmosphere. The center is currently being offered for sal~. ( ''-- RANCH CENTER DIAMOND BAR, CALIFORNIA c . . ~ ) ( l. ., -- ENTERPRISE INDUSTRIAL PARK ~ Enterprise Industrial Park is being developed as an eight acre warehouse/distribution center. The c; a ~ .:11..( crnrrh):l.:a Lt~~. two buildingst capable of accept ion of 143tOOO square feet of warehousing. . ; - . . .. .. The project is located minutes from major east/wEst and north/south freeways. Its central location makes it ideal to conveniently serve the entire San Francisco Bay Area. Construction commenced February 1t 1988 and shell comple- tion is projected for July 15t 1988. . . (~ . " . ::z:z - - . 1: ~ . ~ t l it ~ It! .t \.'~ t t'4 rh ell ~iI !~\ ,tt Hi i,,:\ i ... ~ ~ J .. , - - ...... _. . ~ ""'-1';,,:;> . ....!I.6.C~., .,... .... .... ._..... _... .... _. ...I_.-.............c.... 1 . '. .., IIN""".O ~ l. ~(. J _t~!" - - I" ~ I .. i",: ~. :.~I ," ~ , ..: __ .......;...c,;'J..(. I ~ t If\\ _____ ~-=:.- "I_~ - _, , I ,_.._~- _'"'J7.,-r - ~ - _. 1ft, .;~~--,;.~. ...., .\~t'l ..". _.__.' _ ' \ ~f.h, ---~-r,;.-:..=:-.: ~ il.jt\ ~'..~"t:..F:r::.:: ( JU..lt " ,\~ P t t .t.I " . ~th,t. : ~ IU::) li '~/ li~~ht ~ ~ ,4~h ~I~\~(t "l,.tii! i; (tl , IluHu l . , t i .. NSUIOH .I~ ,. ... ., ,,.. . ,'~ . t' .....1 at, ....... i" - . -. ..a .J .. w ..:a. u .~ a:: "'". : ,,: ... .; of. . .:a '.-- ."'., , " .. .. . I --, :\ ..1 i~' 11/ i ~N 4 .\. ~ ~~ :,'/:' ~ ~~ .~ c · ~ Q. 'II q & l l ':i , r .. c' lft ,.~ ~t l~~ .~l\~ ",..P ~~~H~ ," -~ ., " ,to \.... \ ",. . . t _ ' . :. \ ~ ~p4. ,. ~ (: t . J \ Ji~i ~ .t. I( ili ,-~, ",n ~t,O . -' . "J!\) ..I f . " ", ~ lh ; ~4''''''''~ ~ r-- (J) .. ~ i C1 i ~ - 51:: z ~ e !! At t I . ~:! Ii ~Ii!h Pi! a . & A.. i"'- kl6!iii~i: ~ r , , I ~- ~ ~&~ ..~J a: ~ J. ~ ... ... 1;1 1~ .1 I \ ~ I '~ l' .{ ': t I~.ij , 1 ~ t , ~ I' \~ ~~ ~. ~ ~~ I' h ,{ ~~ ~ _. ;~l ~!'-~ ~~. ~ll. ~t t, ~ " Iii. ! 1111 @{l ~ l ~, r.,i~ I , ~" ,. I~~' .v ~h I , }, t tl.u! :. ~~,~ c ~, ~ : a:. h jl U .. ,- all !~ ~~.. ~l ,j~ Ji I~i~ " :!t: l' t.' \ . 1~ (-J' .e, t, \ .. ", .. ( .', 4, ".. ~ tttt:~~e ll~(\h .,h~t:,), .. '" , . t ~~ , ..;'. - .. : ~. L . C l' , ,. .. , l ('< ~ .. I .- 15 \IiA'IEY ~ .., . .' IRVIE 1ltJBJRIAL QXlD EAST located in the first phase of the DBster-planned Irvine Industrial Carplex-East, the #5 \1Ilatney JUilding is an architectural award Winner. Its dynamic architecture allows the flexibility of easily converting a portion of the warehouse to t\llO-story office space. Windows and additional parking have been provided, as well as a 22 foot .clear height to accamcdate two floors. lew So.Jrce, Ltd. executed a five year lease on April 22, 1988. Lease shall corl~e July 1, 1988 and ternanate July 31, 1993. They will occupy the entire 30,846 square feet. ( ( .. I i " '" . 16 WHATNEY IRVINE INDUSTRIAL COMPLEX EAST IRVINE. CALFORNIA DESCRIPTION: IS WhIIney Irvine Indus1riaI complex East 1Mne, c.ifomia A high-end R & 0 faclity CllPeblecj being 7Q%f\jy i'r1pro\.'8d. lo< r~ d in 1he newest cj Irvine's preIItigi- OUS industriII J*ks, "is project has the ~ ability cj expending from wllhin whIe houBed in an award-winning building exterior. ~NAME: . SIZE: 30,000 square feet ARCHITECT: The McMahon Partnership OWNERSHIP ENTITY: II-C East Associates comprised c:A 8 single linited partner with ~Proper. ties as the general partner. . (~ J (\ -- 00 ~ - . .' ALVARADO COURT MEDICAL BUILDING This aesthetically pleasing three-story m~dical office building boasts curved skylight glass windows, profes- sionally decorated interior common areas, and subter- ranean parking garage with a radio-controlled security gate. The project was sold to a San Diego firm and closed escrow on May 12, 1988. l McMahon/Oliphant Properties Company owned 100~ of the project. " AlVARADO COURT MEDICAl.. BUILDING SAN DIEGO. CALFORNIA c - PROJECT NAME: AMndo Court Medica Buiding San Diego. CaIifomia DESCRIPTION: An aBshItic8tt plnfng, hVl qusIly 3-tby medical oIfic:e buIding consInJcted aver a SltiBrrw.., IeYel of parking. This project offers maximum ftexibiity in suite design within an architec- turally domestic medical fIlciIity. SIZE: 48.000 gross square teet. ARCHITECT: The McMahon Partnership SPACE PLANNER: Cooper & Associates, San Diego, California DEVELOPMENT ENTITY: McMahonIOIiphant Proper- ties, Inc. as owner in c0n- junction with Santa Barbara (.. Savings and Loan. 0 STATUS: Building Shell completed 1982 , (' ". . SAN BERNARDINO AUTO PLAZA .; The San Bernardino Auto Plaza is located in the heart of the vast Inland Empire. This 47 acre project is totally oriented to the sale and service of automobiles. . . The center consists of eleven (11) dealerships which are within walking distance of each other, and afford the automobile customer the luxury of shopping in a convenient and attractive environment. In addition, two lots will be developed into auto-related shops/stores. The design concept of the project consists of the main entrance located off EI Camino Real, and two entrances off Orange Show Road. The dealerships are situated on both aidea of a lushly landscaped horseshoe-shaped promenade, with six convenient cutomer parking locations throughout the plaza. This design provides excellent vi$ibility and access to each dealership. As the development is partially located within a Rede- velopment Project arcn, it is in accordance with the condi- tions, covenants, and restrictions of the Redevelopment Agency of the City.of San Bernardino. c ( ,- _',..~-:-:J -...;t;. ...- . .... ~.: ~ . " ~ I . . 0: - . .. ( -- EAST FIRST STREET ASSOCIATES Santa Ana This project is ideally located in one of Orange Coun- ty's major office markets, ranked second only to the Orange County Airport area. Dramatic architectural design distinguished this five-story, 112,460 square foot professional building. One hundred percent (1004) leased,~the project was sold April 1, 1988. McMahon/Oliphant Properties Co. owned an 85~ interest. ( 2020 E. FIRST STREET SANTA ANA, CALIFORNIA ( ~ PROJECT NAME: 2020 BuIcing SIr1Ia Ana. CA ( DESCRIPTION: ArchIectInIy drwnlIk; 1m ooiquIIy dl8iQ.l8d to 8CCClm .1OdIaa 2.000 equn tXlItD 22.000 equn tXlIliVe ftoor tenanIs. .. 5-Iby project is ide8Iy lIUiIed 10 iIs Cen- tral Orange County mar. ketpIace. It is llInII8gic3Iy located adjaoerd to two major freeways (5 and 55) end extremety accessible to 1he key employee resi- dential areas. SIZE: 115.000 equare feet ARCHITECT: The McMahon. Jones. Ray Partnership DEVELOPMENT . ENTITY: East First Street Associ- lites, a California Linited C. Partnership, McMahon! Oliphant Properties, General Partner. STATUS: SheIl~ September 1985. Project was 50% pnHeased. II' J REDEVELOP"'L.iH AGENCY - REQUEST FOR COMMIS~!uN/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: WOOLWORTH BUILDING - THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS DATE: AUGUST 8, 1988 Synopsis of Previous CommissionlCouncil Action: 3-02-21 Resolution No. 83-53 adopted a Parking License Easement Agreement, Central City Commerce Center, Woolworth Building. 84-02-18 Approval in concept of Amendment to Lease. Agency Counsel instructed to prepare. 85-03-07 Resolution No. 4737 adopted an Agreement amending Parking License and Easement Agreement. 88-05-31 Resolution No. 5115 authorized execution of a Grant of Easement to Southern California Edison Company for installation of a new transformer. 88-08-01 Resolution No. 5138 was adopted. (MAYOR AND COMMON COUNCIL) Recommended Motion: MOVE TO ADOPT A RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. (Continued on page 2) v~<~ (Jgnature Q~~ Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: None Project: CC (Ent. Zone) Date: August 15, 1988 Council Notes: 4237G: GBW: sm 8/15/88 Agenda Item No. /5 (COMMUNITY DEVELOPMENT COMMISSION) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER AND REPEALING RESOLUTION NO. 5138. 4237G:GBW:sm 8/15/88 2 S I A F F R E P 0 R T On February 4, 1988, the Committee approved, in concept, a Third Amendment to the Parking License and Easement with Option Rights. Based, in part, upon that approval the developer proceeded with a lease to the County's Social Service Department. The attached amendment corresponds to the concept approved by the Committee except that the assistance is reduced from $20 per space to $14.40 and requirements are added relating to improvements in the area around the electrical transformer. BACKGROUND In 1983, the Agency entered into an Agreement with the owners of the Woolworth Building, leasing to them 80 total spaces in the 3-level parking structure 35 on the third level and 45 spaces on land leased by the Agency from Central City Company (15-year lease). Under the terms of the lease, the owners of the Woolworth Building pay to the Agency $13,000 per year for five years, for a total of $65,000 to reimburse the Agency for the cost of construction of the 45 spaces on the ground level (referred to as the "J" site>. Owners are also obligated to pay $20/month plus CPI adjustments for each parking space. In the past, the owner has had difficulty leasing the building. The Commission, recognizing the financial hardships of the owner, granted two amendments relieving payments until a tenant could be obtained. The County of San Bernardino Department of Social Service has agreed to a lease rate at $0.95/SF. This extremely low rate represents the developer's competitive bid to entice the County to relocate to the downtown area. This has saved 126 immediate jobs in San Bernardino. The developer has agreed to join Main Street security and maintenance districts if they are formed. In addition the developer has agreed to spend up to $50,000 to make such improvements as are required by the Main Street Revitalization Project to the exterior building and parking structure facade. The developer will expend approximately $33,588 on the building facade leaving $16,412 to be applied to the parking structure facade. The amount for the parking structure will be paid to the Agency upon occupancy of the building. The "J" site which provides 45 of the 80 spaces is owned by the Central City Company and is leased to the Community Development Commission with an option to purchase for $135,000 plus annual CPI adjustment starting in 1998. The current lease payment is $1,500 per month. The first five years were at $920 per month, the second five is $1,500 and the final five will be at $2,500. There are options to extend for 40 years. Agency pays taxes, insurance and repairs. There is no payment to Central City Company for the 35 spaces although, at one time, there had been some reimbursement for a portion of the cost of a parking control system. 4237G: GBW: sm 8/15/88 3 PROPOSED AMENDMENT The developer requested $285,410 of assistance in November of 1987. The proposed agreement will provide $96,768 spread over 7 years ($13.824 per year). The proposed Third Amendment would change the developer'S obligations as follows: a. Delay the start of the $20 lease payment per parking space per month for seven (7) years; however developer to pay $5.60 plus increases per space per month for operation and maintenance. b. Developer to provide exterior maintenance and appearance as well as agreement to join maintenance and security district if one is formed for the Main Street Revitalization Project. c. Developer to pay up to $50.000 for facade improvement to the building and parking structure. d. The west wall of the building is to be resurfaced by developer in such a manner to be compatible with and architecturally conform with the existing north wall. e. A wrought iron security fence will be installed by developer around the transformer. The security fence is to be approved by the Project Manager of San Bernardino Downtown Main Street, Inc. f. The transformer pad will be designed by developer to drain to the street. Staff and the Committee recommend that the Commission authorize the execution of the Third Amendment. 4237G:GBW:sm 8/15/88 4 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF 3 A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 4 OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER AND REPEALING RESOLUTION NO. 5138. 5 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF 6 THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1. Resolution No. 5138 is hereby repealed. 8 SECTION 2. The chairman and Secretary of the Community 9 Development Commission of the City of San Bernardino are hereby 10 authorized and directed to execute for and on behalf of the 11 Redevelopment Agency of the City of San Bernardino a Third 12 Amendment to Parking License and Easement with Option Rights 13 between the Community Development Commission of the City of San 14 Bernardino and Central City Commerce Center, with such 15 nonsubstantive changes to said Amendment as may be approved by 16 the Chairman and Agency Counsel. A copy of said Amendment is 17 attached hereto as Exhibit "1" and incorporated herein by this as 18 though fully set forth at length. 19 Dated: 20 Approved as to form and legal content: 21 AGENCY COUNSEL 22 23 24 25 26 27 28 1 7-9-88 DAB:cm 1 The foregoing resolution was duly adopted by the following 2 to vote, to wit: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -9-88 AB:cm AYES: NAYS: ABSENT or ABSTAIN: Members 2 SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Commission, DO and correct Secretary of the Community Development HEREBY CERTIFY that the attached Resolution is a true copy of Resolution No. adopted , 19 , by the Community Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES MICHAEL MAUDSLEY TOM MINOR VALERIE POPE-LUDLAM NORINE MILLER DATED: Check Appropriate Box YEAS NAYS ABSENT ABSTAIN 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=.1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 , 1988. I SEAL] SBE00088/2356S Secretary of the Community Development Commission of the City of San Bernardino PRE-PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND EMPIRE DOME CORPORATION FOR THE DEVELOPMENT OF A SPORTS AND ENTERTAINMENT FACILITY WITHIN THE CITY OF SAN BERNARDINO THIS AGREEMENT, entered into effective the day of , 1988, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic, hereinafter "Agency", and EMPIRE DOME CORPORATION, a California corporation, hereinafter "Owner", constitutes the agreement of the parties as to the matters set forth hereinafter. WITNESSETH: WHEREAS, there is certain property located within the City of San Bernardino generally described as ---------------------- (the "site"), which Agency desires to have developed into a sports and entertainment facility with onsite parking facilities and attendant commercial, retail and residential development (the "Project"); and WHEREAS, Owner represents that it has the experience and expertise to develop upon the Site such development, including onsite parking, to meet the Agency's goals for such development. NOW, THEREFORE, the parties hereto agree as follows: 1 1. For the period commencing with the signature of the parties hereto, and continuing for 270 days thereafter, unless sooner terminated in accordance with the provisions set forth hereinafter, Agency and Owner shall negotiate exclusively with each other and in good faith toward the preparation and execution of an Owner's Participation Agreement ("OPA") between the parties, for the development of a suitable sports, entertainment, commercial, retail and residential facility upon the site, or upon any other suitable site within the City. 2. This Agreement is intended to be preliminary in nature, and does not create and is not intended to create any interest in the land described. The parties hereto agree that this Agreement is not specifically enforceable. Any breach of this Agreement shall give rise only to an action for damages, and only then in the absence of good faith. 3. The parties set the following as a tentative action schedule, to be complied with substantially, unless otherwise mutually agreed: a. Within ninety (90) days of the date of execution hereof, Owner shall provide Agency with soils reports (including liquefaction, and toxic and hazardous contaminants) and a feasibility study. b. Within one hundred and twenty (120) days of the date of execution hereof, Owner shall provide Agency with a pro forma, proposed conceptual plans and specifications and 2 such other materials as may be needed by the Agency to review the Project as proposed. The pro forma shall contain adequate information to enable Agency to obtain a full economic analysis from its economic consultant. b. Within one hundred twenty (120) days of the date of execution hereof, Agency shall submit to owner a first draft of its proposed OPA. c. Within two hundred forty (240) days of the date of execution hereof, Agency Staff and Owner shall submit a final proposal to the Redevelopment Committee of the Agency. 4. In order to carry out the foregoing tentative action schedule, Agency and Owner covenant that they will respond forthwith to any and all reasonable requests for additional information by the other party, and agree that any failure to provide the information requested within ten (10) working days from the date of such request shall constitute grounds for immediate termination of this Agreement, unless additional time is granted by the requester. Termination under this paragraph shall be on written notice served on the opposite party. 5. The fOllowing items shall be discussed during negotiations in an attempt to arrive at a mutually agreeable OPA: a. The providing by Owner of a model prior to completion of an OPA. 3 b. Owner will have the right, subject to such requirements as may be imposed by third parties, such as the City of San Bernardino or the County of San Bernardino, to increase the project size during preliminary discussions or after execution of an OPA. c. Owner shall submi t a complete marketing package, including how it intends to promote and market the site, which information shall include a description of the types of events anticipated for the sports and entertainment facility. d. Negotiation of performance bond to guarantee completion of construction, or some other mechanism to assure that construction is proceeding as planned, and that adequate financing remains at all times available for completing the project, or other means are arrived at to satisfy Agency's concern that this project will be satisfactorily completed. e. Agency participation in profits based on Agency participation in expenses, if appropriate. f. Control of parking facility, and provisions for including controls over charges for parking, and Agency participation in construction expenses for the parking facility. These matters shall include whether any obligation will exist for making public parking available. g. Maintenance standards and adequate security provisions. h. Owner shall identify early in negotiations any 4 Agency assistance which Owner requests from Agency, including any assistance in obtaining tax-exempt financing, low-cost financing, zoning changes, liquor license approval (conditional use permits may be required in some circumstances) and any other matters which will require special considerations from Agency or from the City of San Bernardino. i. Assurance that Owner will be bringing new tenants into the City of San Bernardino, unless transfer of present occupants of buildings within City are brought into this complex only after Agency review and consent. Some safeguards against "stealing tenants" from other businesses or locations in the City of San Bernardino shall be devised. j. Owner shall provide a tenant-mix plan, and a leasing schedule, with letters of interest from proposed tenants and other evidence of leasability of the proposed development. Agency is not interested in a facility which will be vacant. k. Provisions in lieu of development, if any, for any reason, Owner fails to complete development within the time specified. I. Provisions ensuring against hOlding for speculative purposes, including prohibitions against transfers of interest without Agency consent. Similar prohibitions against change of principals of developing entity and the development team. 5 m. Participation by Owner in any ongoing or subsequently enacted program having general public benefit in the area, including, without limitation, Agency programs regarding streetscape, lighting, community "themes" in building design or maintenance. 6. The items listed for negotiation are not necessarily the only items which will be discussed in the negotiating process. Agency and Owner shall negotiate exclusively with each other and in good faith toward completion of an Owner's Participation Agreement in such form as to grant to the parties the greatest assurance possible that the development will be operated in a successful manner and contribute to the greatest possible betterment of the City of San Bernardino. 7. The parties acknowledge and understand that financial incentives of the Agency come from the tax increment developed in the specific redevelopment area and any such incentives depend on sufficient tax increment being available. IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first set forth above. 6 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, CA 92418 EMPIRE DOME CORPORATION a California corporation 301 Vanderbilt Way, #245 San Bernardino, CA 92408 By Chairman By By Secretary By Approved as to form and legal content: AGENCY COUNSEL: ~ 7 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTIONS RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and directed to execute for and on behalf of said City a Consent Clause contained in the Third Amendment to Parking License and Ease With Option Rights between the Community Development Commission of the City of San Bernardino and Central 12 City Commerce Center, a copy of which is attached hereto as 13 Exhibit "1", and incorporated herein by reference as fully as though set forth at length. 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 , 1988, by the following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk 7-8-88 DAB:cm 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The foregoing resolution is hereby approved this of , 1988. day Evlyn Wilcox, Mayor City of San Bernardino Approved as to form an~ legal contJnt: \~7.j~ (Jity Attorney 7-8-88 DAB:cm 2 SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Commission, DO and correct Secretary of the Community Development HEREBY CERTIFY that the attached Resolution is a true copy of Resolution No. adopted , 19 , by the Community Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES MICHAEL MAUDSLEY TOM MINOR VALERIE POPE-LUDLAM NORINE MILLER DATED: Check Appropriate Box YEAS NAYS ABSENT ABSTAIN 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=.1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 , 1988. [SEAL] SBE00088/2356S Secretary of the Community Development Commission of the City of San Bernardino 1 2 3 4 5 THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS THIS THIRD AMENDMENT entered into effective the ____ day of 1988, between the COMMUNITY 6 DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, 7 hereinafter "Agency", and CENTRAL CITY COMMERCE CENTER, a 8 California general partnership, as licensee, hereinafter 9 "Center", and consented to by the CITY OF SAN BERNARDINO, 10 hereinafter "City", amends that certain Parking License and 11 Easement with Option Rights entered into between the parties on 12 the 21st day of April, 1983, as previously amended pursuant to 13 Resolution No. 4737 of the Community Development Commission and 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 85-84 of the City of San Bernardino, and as further amended effective June 2, 1986, pursuant to Resolution No. 4884 of the Community Development Commission and Resolution No. 86-192 of the City of San Bernardino. 1. Recitals. The parties hereto desire to amend that certain Parking License and Easement with Option Rights, hereinafter referred to as the "Agreement", heretofore entered into as specified above to delay the start of a portion of the $20.00 per space, per month, lease payment, to provide for exterior maintenance and appearance, to provide for joining a maintenance and security district if one is formed for the Main Street Revitalization Project, and to provide for approval by the Agency of exterior building and parking area facade improvements in keeping with the Main Street Revitalization Project. 7-8-88 DAB:cm 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Implementation. The parties heretofore agree that: A. Paragraph 2.5 as added to the Agreement by the First Amendment dated April 4, 1985, is hereby amended to read as follows "2.5 Notwi thstanding the provisions of Section 2.3 above, payments by Center, as licensee, for the monthly parking space charges shall be postponed until January 1, 1995, at which time the monthly charges shall begin to be due and to be paid by Center to Agency. Except that upon execution of this Third Amendment, Center shall commence and continue to pay the operation and maintenance costs for said parking spaces to Agency as periodically established. All sums accrued and past due for monthly parking space charges are hereby excused, and shall not become due. On January 1, 1995, the licensee shall forthwith commence monthly payments at the rate of $20.00 per month, per space, for each of the parking spaces included in the 'J' building and for each of the parking spaces covered by this agreement in the parking structure. This amendment shall have no effect whatsoever upon payment of the $13,000 annually involving reimbursement for the cost of establishing parking spaces in the 'J' building, and the monthly per space charge shall be subject to adjustment periodically as provided for in Section 2.3." B. Paragraphs 2.6, 2.7 and 2.8 are hereby added to the agreement to read as follows: " 2 . 6. Center shall provide and maintain exterior maintenance and appearance of the Woolworth building to the 7-8-88 DAB:cm 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 satisfaction of Agency and hereby agrees to join a maintenance and security district if one is formed for the Main street Revitalization Project or any similar downtown rehabilitation program." "2.7. Center agrees to make such improvements as are required by the Main Street Revitalization Project or any similar downtown rehabilitation program to the exterior building and parking area facade, provided that the cost of any such improvements shall not exceed the total sum of $50,000 including costs in the approximate amount of $33,588 for exterior improvements as presently planned. Upon execution of this agreement Center hereby agrees to deposit said amount with Agency. Should any portion of said $50,000 not be used for such improvements within three (3) years of said date, such excess shall be returned. The west wall of the building is to be resurfaced in such a manner as to be compatible with and architecturally conform to the existing north wall. All such proposed improvements shall be first submitted to the Agency for approval." "2.8 A wrought iron security fence to be approved by the Project Manager of San Bernardino Downtown Main Street, Inc. shall be installed around the transformer. In addition, the transformer pad shall be designed to drain to the street." 3. This Amendment shall only take effect if the County of San Bernardino or another tenant acceptable to Agency takes possession of the building on or before December 31, 1988. 28 7-8-88 DAB:cm 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Should such not occur then this Amendment shall be null and void and all amounts previously due and owing to Agency shall again become due and owing. 4. In all other respects the Parking License and Easement with Option Rights as entered into on the 21st day of April, 1983, and as previously amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first set forth above. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO CENTRAL CITY COMMERCE CENTER A Calif. General Partnership By By NICHOLAS J. COUSSOULIS, A General Partner Chairman By By Secretary DR. JEROME T. TAUREK, A General Partner Approved as to form and legal content: AGENCY COUNSEL BY~ 7-8-88 DAB:cm 4 1 2 The City of San Bernardino hereby consents to this 3 Agreement. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: City Clerk Approved as to form an legal content: 7-8-88 DAB:cm 5 CITY OF SAN BERNARDINO By Evlyn Wilcox, Mayor SUMMARY Lease between County Adoption and Central City Commerce Center (Woolworth Building) Leased Space Office Storage 19,873 SF 13,678 SF TOTAL 33,551 SF Terms: 7 years with three 2-year options to extend. Rate: Office Space - .95t/SF beginning with year one increasing annually by 2.51; plus Storage Area -.40t/SF commencing year three NOTE: Office space includes parking fees, common area maintenance, tenant improvements and furnishings. ( Monthly Rent Schedule: Year Total Building Office Space Basement 1 $18,985 (57t/SF) $18,985 (95t/SF) $ 0 (Ot/SF) 2 $19,432 ( 58t/SF> $19,432 (98~/SF) $ 0 (Ot/SF> 3 $25,361 <76t/SF) $19,890 ($1.00/SF) $5,471 (40t/SF> 4 $25,831 <77t/SF) $20,360 ($1.02/SF) $5,471 (40t/SF) 5 $26,313 <78t/SF> $20,841 ($1.05/SF) $5,471 (40t/SF) 6 $26,806 (80t/SF) $21,335 ($1.07/SF) $5,471 (40~/SF) 7 $27,312 (81t/SF> $21,841 ($1.10/SF> $5,471 (40t/SF> NOTE: For extensions the rate is to be renegotiated with "consideration" to be given to the County's position that the rent should be reduced $4,175 per month (21~ over the office space or 12~ over the full building) to reflect the end an amotization period for tenant improvements. This would bring rates back to about 69~ overall or 89~ for office plus 40~ for the basement. This would reflect a value of $250,000 to $300,000 for the improvements depending upon the interest rate used. 7/21/88:4l81G -- RtDtVtLOPMtNT AGtNCY - RtQUtST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: NW - PEC BUILDING #1 PROPOSED TENANT DATE: AUGUST 11, 1988 Synopsis of Previous Commission/Council/Committee Action: 06/05/75 Resolution 3069 authorized lease of land to Operation Second Chance (OSC) for the development of a Public Enterprise Center. 10/06/80 Resolution 4106 - Disposition and Joint Development Agreement with Operation Second Chance for adjacent property. 01/09/84 Resolution 4567 authorized amendment to lease agreement (unexecuted). 06/17/85 Motion to declare OSC in default (continued). (continued on page 2) (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to authorize Acting Executive Director to execute CUP forms submitted by Chaparral, a proposed tenant in the Public Enterprise Center. r;2I.t ;,~ -- Contact Person: James E. Robbins Phone: 384-5081 6th Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: N/A Project: NW Date: August 15, 1988 Council Notes: Agenda Item No. 4257G: ND: sm 8/15/88 Synopsis of previous Commission/Council action: (continued from page 1) 07/15/85 Motion to continue to 08/05/85 in order to receive report from Ways and Means Committee (sub committee). 08/05/85 Continued to 08/19/84 to hear Ways and Means report. 08/19/85 Continued until Ways and Means recommends action. 09/09/85 Commission Resolution 4793 authorized execution of First Amendment to Land Lease. 09/23/85 Resolution 85-380 authorizing amendment to First Amendment for Dorothy Inghram Library facilities. 06/86 Bankruptcy filed. 11/86 Court order - Agency regains possession of Public Enterprise facility. 12/08/86 Motion ratifying short term tenancy agreement that exists between Operation Second Chance and others, Public Enterprise Building. 12/22/86 Resolution No. 4974 - short term lease with Golden State School. 03/23/87 Motion authorization Request For Proposals for Public Enterprise Center (two responded - neither approved). 04/30/87 Commission continued repair of air conditioner until the next meeting in order to obtain additional bids. 07/02/87 Resolution No. 5029 authorized execution of an extension to lease (Golden State Schools). 01/19/88 Resolution No. 88-16 and No. 5066 authorized execution of CATV Studio Lease. 01/19/88 Resolution No. 88-15 and No. 5065 authorized execution of Postal and Utility Center Lease. 02/01/88 Resolution No. 88-22 and No. 5068 authorized execution of Public Enterprise Center - Library Lease. 03/21/88 Commission discussed future use of PEC Building and Technical Support Building. Appraisal of Technical Support Building authorized. 04/25/88 Commission reviewed appraisal of Technical Support Building. 08/01/88 Resolution 88-287 and 5136 authorized execution of Westside Drop-In Center Lease. 4257G:ND:sm 8/15/88 2 S T A F F R E P 0 R T Chaparral, a program of Victor Residential Center, Inc., has applied for a CUP permit as a condition of leasing space in the Public Enterprise Center Building located at 1505 W. Highland in the Northwest Project area. Chaparral is a fully funded non-profit organization which treats emotionally disturbed children. They wish to lease approximately 5,000 square feet in the PEC Building, as it offers classroom facilities in a private setting. They are currently funded by ADA, AFDC, Short Doyle - Residence, and Short Doyle - Medi-Ca1. Staff recommends authorization for execution of the CUP documents. 4257G:ND:sm 8/15/88 3 ~ CITY OF SAN BERNARDINO PLANNING DEPARTMENT'" ~ LETTER OF AUTHORIZATION" ~ ..., TO: CITY OF SAN BERNARDINO PLANNING DEPARTMENT FROM: (NAME) : (ADDRESS) : PATRICK CARROWAY 415 w. Vall~y Blvd SUite 19-22 (TEL.NO.): (714) 370-2891 RE: APPLICATION NUMBER(S): THIS LETTER SHALL SERVE TO NOTIFY YOU AND VERIFY THAT I/WE AM/ARE THE LEGAL OWNERS OF THE PROPERTY DESCRIBED IN EXHIBIT "B" ATTACHED HERETO AND DO HEREBY AUTHORIZE: (N~E): ~ ~ :~~~~E~~~;: C\ . ( ~ _ !~ TO FILE AND REPRESENT MY/OUR INTEREST IN THE ABOVE REFERENCED APPLI- CA TI ON ( S ) . I/WE AM/ARE THE LEGAL OWNERS OF SAID PROPERTY; HAVE READ THE FOREGOING LETTER OF AUTHORIZATION AND KNOW THE CONTENTS THEREOF; AND DO HEREBY CERTIFY THAT THE SAME IS TRUE OF MY/OUR OWN KNOWLEDGE. I/WE CERTIFY (OR DECLARE) UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT. SIGNATURE(S) OF LEGAL OWNERS(S): DATE DATE \.. DATE ~ MAY 1986 sky ~ CITY OF SAN BERNARDINO PLANN ING DEPARTMENT'" LETTER OF CERTIFICATION ~ ..... ~ ..... STATE OF CALIFORNIA ) ) SS COUNTY OF SAN BERNARDINO) It t HEREBY CERTIFY THAT ATTACHED LIST CONTAINS THE NAMES AND ADDRESSES OF ALL PERSONS TO WHOM ALL PROPERTY IS ASSESSED AS THEY APPEAR ON THE LATEST AVAILABLE ASSESSMENT ROLL OF THE COUNTY OF SAN BERNAR- DINO WITHIN THE AREA DESCRIBED AND FOR A DISTANCE OF FIVE HUNDRED (500) FEET FROM THE EXTERIOR BOUNDARIES OF PROPERTY LEGALLY DESCR I BED AS: Tract 2852, Lots 9 through 15 and North 103.07 feet of Lots 34 through 40 APN No.ls: 0143-012-72/0143-012-73 I/WE CERTIFY (OR DECLARE) UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT DATE: (SIGNED) ..... ~ SEPT. 1.le Iky , ...". ... -- ................ ................................................ ................................ ... ~ ~ ~ ~ ~ ~... ~aaaaa: ~ S"NNNNN4::NNNNNNN ....................................N...... 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Ol 2' tQ tC t "' t ----.-y- -- .Q MINUTES REDEVELOPMENT COMMITTEE T1 me : 2:30 p.m., Wednesday, May 11, 1988 Place: Council Conference Room Ro 11 Ca 11 Committee Member Esther Estrada, Chairman; Committee Members Jess Flores, Michael Maudsley; Lorraine Velarde, Manager, Administrative Services; Dennis Barlow, Senior Assistant City Attorney; James Penman, City Attorney; Phil Arvizo, Executive Assistant to Council; Rosalie Morales, Recording Secretary. A special meeting had been called on Wednesday, May 11, 1988 to discuss personnel matters in closed session. While in session Member Estrada sought counsel's legal opinion as to whether in fact the closed session could become an open session. Chairman Estrada was advised by Dennis Barlow, Senior Assistant City Attorney that in fact she could conduct an open session. Attached is a transcript of said meeting. ADJOURNED MEETING At 6:00 p.m., the Redevelopment Committee adjourned. (~l APPROVED: r&~ - 1322H J TRANSCRIPT SPECIAL REDEVELOPMENT COMMITTEE Time: 2:30 p.m., Wednesday, May 11, 1988 Place: Council Conference Room Roll Call: Committee Member Esther Estrada, Chairman; Committee Members Jess Flores, Michael Maudsley; Lorraine Velarde, Manager, Administrative Services; Dennis Barlow, James Penman, City Attorney; Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to Council; Rosalie Morales, Recording Secretary. Estrada: I guess the first is that since we don't have anything else on the agenda uh how do we handle that if we want to ask questions relative to this meeting. Can we actually do that, I mean how bound are we by whatever the Brown, the Brown uh... Barlow: If you want uh uh uh if you want to ask questions about how the meeting is going to be conducted you can use that thats part of the process. If you want to ask uh I'm not sure what questions you are talking about so.... Estrada: Ok, for instance we have uh uh we have an item that that calls for a close session. Now, Can the committee choose to instead of having the closed session call it into an open session. Barlow: Estrada: Barlow: Estrada: Flores: Estrada: Barlow: Estrada: l263H Yes, talking about personnel? Certainly. A personnel session. So we could make that change? Yes, I think so. I just want to mention I think you received our note on her that--did copy of the letter from Glenda yesterday? Yes, I have it here. Yes, I have a copy. Um, secondly so if we wanted to in the context of speaking of personnel that's a very broad.... Brown Act talks about hiring, performance, or discipline termination. Those type of things of any personnel. How about say for instance uh I don't know its so much performance is the word but when you are talking about activities is that considered performance? Barlow: Estrada: Barlow: Estrada: Barlow: Estrada: Barlow: Arvizo: Barlow: Arvizo: l263H Its got t~ oe activities of somebody. Who. you are trying to say, what you are trying. ..if you are going to talk about in a personnel session it has to be how somebody performs...if they perform pursuant to whatever regulations we have or did they perform uh pursuant to whatever standards we have... What I'm trying to get at like say for instance if I wanted to find out if uh employee Jane Smith umm xeroxed a thousand copies of ex report that has nothing to do with evaluation of performance per say it has to do with activity did Jane Smith actually do this. So can that be discussed? If she....if you are gonna.....if you divide it like that lets say ok what happened, da, da, da, da that is not specific performance. If you want to talk about for instance are the policies, are the procedures are the ways that the Agency operates correct. That's not performance. And, that should be talked about in open session you can do it with the committee or you can do it at the commission level. If you are going to talk about Jane Smith xeroxed a thousand copies as she was directed to do, or was she directed to do or was she directed to that's Ok, how much, how much latitude do we have considering the fact that we have one Agenda item that says personnel matter. Does the Committee have the perogative to bring in other items relative to the function of this personnel? Sure, if you can talk, well, yes, you can talk about a lot of things as long as it is related to the employment, the performance or termination, discipline of individuals. You need to talk about individuals to keep it in what we are talking about. And you can talk about alot of individuals, but you need to talk about individuals to keep it under this context. Ok, now, if we talk about, lets say that we have a petition here from a staff person. If we are talking about other staff persons, and there performance what they've done not necessarily this individual that other individual we can discuss those other individuals in closed session. That's true. Do you have to give them notice. You do not. To allow them to ... 2 Flores: Barlow: Arvizo: Barlow: Estrada: Barlow: Estrada: Barlow: Estrada: Estrada: Barlow: They don' jave to know that you are disc~ ,ing things? No. There is nothing in the Brown Act tells you... They don't have to come out with a decision. Either you can come out with a decision or you may ask them to come in and answer some questions, you certainly you want to give people a chance to answer if there are allegations against them from either within or without the Agency. At that pOint once they get that kind of notice to know to ask if you have it public or not. So then we could bring in that person and ask them questions about their performance uh Or, the performance of others. Or the performance of others? As long as it is not this individual. As long as it is not this individual, OK. Um, Now if we decide to discuss say for instance the procedures relative to the performance of some individuals here can that...if we want to say for instance there are these procedures here, um, we want to know if all the all the employees have followed these procedures, we can ask, we can refer to those procedures and talk about those procedures as long as they are associated with something having to do with personnel. That' right. And the other way around too is you find out why did you do such and such a thing or why did so and so do such a thing because the procedure provided and then you say well wait we need to change the procedures, for instance, yes. Estrada: At 2:40 p.m. Mayor Evlyn Wilcox and Michael Maudsley, Councilman arrived. l263H Basically what we have done Mayor and Mike is to open a meeting and we're discussing the parameters based on a couple for instance the fact that we have one item which says a closed session to consider personnel matters and I'm trying to see if we can get at least some kind of definition of how broad and how narrow that is so that we can at least what we can and can't do. My first question to Mr. Barlow was can we also have go from a closed session into an open session since there is nothing on the agenda that says that we will discuss it in open session. And he has answered that yes.... 3 Barlow: Estrada: Wilcox: Barlow: Wilcox: Estrada: Wilcox: Barlow: Barlow: Wilcox: Barlow: Estrada: Barlow: l263H Personnel ssions may be open or closed a (he option of the agency. The Agency I mean the Committee. I guess I'm trying to get a sense for the uh Brown Act and how that applies to the Committee and what we may be able to do and not do. The other question also dealt with talKing about the procedures and how procedures can be discussed and I guess they can only be discussed if we are tieing it in somehow to personnel performance... You mean in closed session. Well today at all. The only thing before us is a personnel item.... is a personnel item and I guess my question is uh depending on the personnel that you are going to be talKing about..... Well personnel is, as I say personnel, personnel and that's the other thing we did say, personnel is such a broad subject that we can be talKing to a number of people and with a number of people and we have found out that we can in fact request other staff people to come to the Committee in closed session and open session today and uh.... To talK procedures. To talK their performance or the performance of others as long as it is not the individual who is........ I would suggest if you are talKing about having an open on on her for instance that she be given... told that it's here because she has aSKed to to an open session so she should be there to be able to hear that. I'd just mention that to you. I don't see her here. Uh, the performance you could talK with others in closed session about their performance but you could not talK about the performance of the individual who is ...... No...That's right you can talK about the performance in closed session In Closed session. In closed session. You could talk about her performance in open session if she is given notice of that we are doing so. 4 Wilcox: Flores: Estrada: Barlow: Estrada: Barlow: Estrada: Barlow: Estrada: Wilcox: 1263H OK. She can elect to either be here or not. And I guess so I guess that brings it back to the committee. I think depending on how you want to proceed I think we have several avenues open to us. One, we could speak to staff people in executive session. Um, and notify Glenda that we would be discussing her in open session which would then give her an opportunity to be here if she so desires. Uh but the uh other individuals could be spoken to in uh in uh closed session. That's one. He could do the whole thing in closed session and not discuss Glenda at all and do the whole thing in open session and uh start with with other matters and and allow Ms. Saul time to get here if you will. Can I make a comment. That' all very possible. The difficulty that you are going to face if you get into talking about the performance of others than Ms. Saul is that... and uh....you know, you all know it if you are going to talk about a subordinate it automatically goes to the director, you know, it's going to be hard to isolate just talking about just talking about the performance of subordinates without talking in this situation in any way the activities and the role of the director so I just caution you with that. Hell I think there may be things that the subordinates may have done that that... they... we could .... we could find out that have nothing to do with the director. Ok, that's very possible. 11m just saying that in...in.... I mean if a subordinate wrote a memo on July 15 about x, y, and z what does that have to do with the director. Unless you ask her why did you write the memo and she says the director told me to. That gets into it you see. The only thing I'm saying is that's possible and in this situation and....and...an agency this size which is really quite small that's very likely. Well let me ask you this question. I don't know what the purpose of the. ....you know.... ..1 don't know what the intent was when the meeting was called. 1...1 got 5 Estrada: Wilcox: Estrada: Wilcox: Estrada: Wilcox: Estrada: Wilcox: l263H The inter )f this meeting Mayor is to... make uh... come forth witn some kind of recommendation to the full commission relative to the function at the RDA. I think there is some concern at least I certainly express my concerns to my colleagues and I've....and my cOlleagues have expressed their concern to me relative to the....many...many things that are...that are...that are on the um call it on the um on Brier uh projects and what have you and not necessarily feeling that there is sufficient direction being provided at the agency. You mean...you mean uh direction... The need to have more leadership.... direction since ... direction since uh for the last...in the last three weeks or with the situation that we have now, or the direction that was given uh prior to this incident. I would say within the last... I already...Uh....this meeting ...is being called because of what has happened within the last three weeks. In my opinion there is a vacuum up in the RDA and um concerned about the different things that the project and what have you that are there and the need to have somebody with the skills to provide that kind of direction and leadership to the staff. Now whether the investigation over at the county turns up x, y, or z is immaterial but I think that from the City stand point uh the Commission standpoint we ought to be making some....coming up with some kind of a recommendation even if it is on an interim basis to do something more substantive than what is...what is....what is taken place now. With the...with the deputy in place. What I'm hearing is since the deputy is the acting director than there's the there's the indication that there is not proper direction. Perhaps the level of skill and leadership needed for the Agency is not there and...and uh we need to make some kind of decision as to whether its to request that you bring Ms. Saul back and terminate her uh leave...and uh until county reports to you back and then you come back for whatever uh or make some other recommendations to you on an interim basis or a permanent basis but I think that there needs to be some... its also very unfair we think to the staff, to Ms. Saul 1 think for her to be sitting out there in limbo for three weeks and not really know.... ....1 didn't ask for the investigation. 6 Estrada: Wilcox: Estrada: Wilcox: Barlow: Arvizo: Barlow: Estrada: Wilcox: Barlow: Wilcox: Body: l263H I'm sure, are aware that uh there were ry few commissioners that knew uh what was going on. I mean by the time some of us found out about it the district attorney already had the complaint in his hands. so. you know. uh all I'm saying is where we are at now and I'm personally very unhappy with the situation as it is. I'm looking to get off the dime and move to some. some..... . I understand that uh one of the concerns uh one of the areas that was left to the uh. handled by district attorney has happened and I'm hoping that there is some information that is going to be in it........ There may be and not be. Well. Just to clarify it your concerns expressed about the day to day operation of the agency now. may be directed not so much at the abilities of the people who are there as much as the situation that they find themselves in. Correct? In that you know they are really baby sitting or they you know that's a concern and I think it would be a concern with any situation. who is really in charge. I think she's got a management situation that should be addressed but outside of the talk about an increase........ Sure that's....that's what I am saying. You find yourself that all of a sudden the director is sitting outside and your covering for a while its got to be a very difficult situation no matter how well. how good your skills are. Well I'm not so sure..... I think. I think we are probably questioning the person in charge.... No. No. that's what I'm saying....that's what I'm trying to clarify is that we are not talking about as to whether or not the person in charge has good skills or bad skills. Its a difficult situation and that's all that I'm saying for the staff as a whole. Given the situation I mean compare it to if if uh the director is on vacation and you know.. .... Disagreeing that it is not the same situation. 7 Wilcox: I underst 1. Flores: You really can't can't the the staff cannot cannot work under those conditions as if the director is on vacation because you know and they know that the facts are that the director is not on vacation. Barlow: It is difficult for everyone down there certainly because ........ . Estrada: Not only that but in most cases in a situation as this I suspect that the decision making is left on the shoulders of the deputy director and a vacation situation many times the director is staying in touch with the agency and provides some direction or whatever and right now uh that is not acceptable because of the situation being what it is. I doubt very much and I would hope that that is not the case. That the director is not giving direction from where she's at. Wilcox: I'm sure with the acting uh, with the deputy director named as the acting I'm sure that's not happening. Maudsley: I'm not so sure the.. ..we've been waiting for the district attorney to get back whatever it is that they are doing. I don't know how we are going to know when they are done but I think alot of us have some questions that we could resolve over this last incident that keep coming up and we get held back and I don't think we can hold back too much longer till we get alot of these questions answered for the benefit of the entire commission uh we need to....at some time buyout and go ahead and also request of the city attorney I certainly hold back trying to find out ........that I have concerns with and I would like the opportunity as a commissioner to resolve some of the questions that I have about the entire agency's role in this last incident with each and every individual and their role.....I think that the personnel agency uh know that we haven't been up there conducting our own inquiry into this getting our own ship in order here to resolve questions I have to ask and also ........... this thing isn't going to be over until its over but we do have alot of extremely important things going on right now that I have a feeling that we have our agency right now is the day to day decisioning process greatly influenced by Miller and Schroeder and Sabo and Deitsch and perhaps even more so than the past. I sincerely hope that I am wrong in my feelings about that where we have 25 people down there who want to know what's going on somehow over the last year we did not get the through the implementation of the first personnel practice procedures all the way through before we were going to and I think we need to get that back on track get there l263H 8 personnel status resolved and I believe that ultimately we need to get th' thing the way on the table bee le we obviously have a number 0, our employees that although I have no first hand knowledge I would assume that they have participated in the district attorney's investigation as such I think they have to understand that this was part of the course of conduct of their employment and if there's not going to be any reprisals or terminations or bad feelings because of that situation. Wilcox: I don't know until that report is out. He really don't know what that report says. So we don't really know...... Maudsley: Oh, well we are not going to see the district attorney's report I'm convinced I may have the impression that the district attorney office that says either some one is in difficulty or they are not in difficulty but....uh.. ..if someone is in difficulty the only one that is going to see that report is their defense counsel and if they are not I do not know if those things do become public records but the district attorney is not going to be conducting an internal investigation and it certainly is not conducting I would think asking questions that as a commissioners we should be asking he's doing his thing and Hilcox: I think that uh there's staff on board down stairs and staff that is not on board right now uh that would be happy to talk about the whole thing given the right circumstances. Maudsley: I certainly would be delighted to talk with them we seemed to have a bit of a delimma the last time we attempted to do that depending on which side of the team we were on it was either a very bad idea or a real bad idea but we went ahead and no one seemed to enthused that it was a good idea uh I'm tired of doing the public's business behind closed doors as such, uh we have a lot of vertical veins that I think we need to develop answers for. Some critical financial questions that I personally do not have the answers for and I'm tired of conditioned lived and we're sitting and twiddling our thumbs waiting for this to get resolved and at the same time as Esther said we have a whole wad of projects going on uh I don't know ......1 don't know if we can do. We have....... Wilcox: Can you be specific? I think staff is there to answer specific questions I don't think we need to go around in uh a cloud of not knowing when there is staff there to answer some of those concerns if you throw the questions out I think that there is staff there that can respond whether it is a project whether its a progress of a financial situation or what have you I think that there is staff there to do that. 9 l263H Mauds1ey: We could r that Mayor but the other prob1 is that everyone on the comrni~~.on understands any people that ~it in positions of importance in that agency and I think that we need to find out who did what to whom and how to make sure that we have resolved otherwise there are going to be questions. The first thing that I think of when I'm talking to somebody and it could lead back to this incident of uh uh until I know for sure what in fact ..... what factors ..... what factors what they thought it would make decisions on this because I don't have all the information I don't know if I can come up.... Wilcox: Well I think until there is an opportunity to discuss with all parties being present the feasibility um and all the other aspects of it I don't think you are ever going to explain that. It isn't gong to come miraculously unless there is some discussion. Mauds1ey: I think we have a great as I say one more time we have a great many employees up there that are extremely apprehensive because of a lack of personnel policies. And I think we need to do something immediately to re-enforce their position on their re-enforce the safety of their jobs if you will and the uh uh well I'm not quite certain what the best way to go about doing that is but I know that we still have a great number of people that are involved in this unpleasant situation that are in positions of authority with the ability to dismiss anyone who thinks that they are their enemy and without any in-place personnel practices or hiring of special procedura1s um besides..... long I don't think that they have any Mayor you gave us a challenge also you pushed a challenge to bring forth a number of other things that are occurring personnel wise any agency and I still would be reluctant to do so until we get this one rather unpleasant situation resolved. I think that we need to give up a end of time when we are doing uh real management audit there and a personnel audit that we are going to find that we have a great many personnel problems and a lot of it for a lack of procedures being in place all discrimination, civil rights, and allegations that were raised last year resolved and I think that we need to make that a real priority for the agency. The other thing is that I think that we need to immediately go before the entire commission and recommend to them something that simple that it takes uh a hold of that commission before someone can be dismissed unless it is for cause and I think that will go a long way towards allaying the fears of some of the people there that they may be the victims of something unpleasant that is going to happen to them. 1263H 10 Wilcox: I think t~ ~ are those mechanisms that ca" 'rotect those that are gUilty ~nd those that protect those thaL are innocent and uh I... I.... strongly believe that if you give somebody control they need to have control and not have all the...... Maudsley: I believe that the commission needs to be in control Mayor as a clear window into the community representing this entire community that we are doing our utmost to review the situation I don't think we have been able to do our utmost to resolve and uh I am not willing to leave these reports out there hanging and I am very very very tired of hearing the rumblings of all levels of employees in that agency of their fears right now and their paranoia as well as some on-going dissatisfaction in the lack of comprehensive personnel policy and grievance procedure that gives them basic employee rights we would think it extended to any modern and progressive organization, the fact is is that uh, they really have not a whole lot not being civil service employees and not being a true an outside corporation or whatever it is really caught up in the twix and ... and between......I have a great deal of empathy for their position and lack of ... of representation and protection right now uh both protect their jobs and recognize the grievance procedure that is partially implied I think that the commission has the board to review the hirings and the firings and the grievances and they need someone to appeal to. Wilcox: Do you know what the practices are in other Redevelopment Agencies. Maudsley: I could really care less! Wilcox: Hell I think there's uh, I think there's uh...... Maudsley: I could really care less Mayor! Wilcox: There is a philosophy in the redevelopment agency that acts like and should act like a business and not like civil service. Maudsley: He make the analysis within our redevelopment agency and time comparison, salary ratios, and everything else with the other municipal employees and that's uh that's a double standard thats almost impossible to have apples and oranges in the same building it is also possible to have council people be commissioners. There are some things that are darn good but I don't feel that the redevelopment personnel practices are in other redevelopment agencies I think I know what you hope to hear and gosh we do have I believe we have many many many many people that are concerned right now and we need proper personnel policies that are legally enforceable, defensible and everything 11 1263H else and I don't believe that they have that that pretention. I th ink we nr -1 to number one te 11 the emp 10' s we are goi ng to be proceed :I with thi s as a priority and t....Je the last redevelopment committee meeting we set aside priorities for a short while personal priorities of the agency needs to have some I think as a priority the office last unpleasant incident involves some of the personnel need to have some of the greater arbitrarily than a uh uh analysis by a partial uh CPA and I believe that we need uh ...... Wilcox: What do you mean by an analysis by a partial? Maudsley: My words are chosen carefully Mayor! You can't have an impartial analysis by someone who is a prior employee of that agency that has been called in to investigate other personnel matters. In the future I think that the uh the fact is that uh what qualifications CPA firm was chosen I think partial by impartial matter but the agency already spends quite a bit of money every year to hire an impartial CPA by a national recognized company to investigate discrepancies of accounts the issue is not ...... '" at all discrepancies of accounting the issue has always been on public policies, procedures, and accountability for these public policies procedures I think that is how we need to ultimately proceed .... ....... well it ain't my fault it was late! ...Those things they just have to be resolved and they have to be resolved soon. Wilcox: Every entity has to have personnel policies and procedures every entity so that everybody knows by which they are working and functioning and laid out as clearly as possible. It was my understanding that uh we uh that the personnel policies were being revised I don't know....1 thought I had seen them on the Redevelopment Committee Agenda uh not for a while but it seems to me that I remember those being on there time after time and they kept on being continued. ...continued. Maudsley: They weren't continued Mayor I believe that they were being worked on by staff if you will recall the last time that the uh urn policies came out there were a number of issues raised up in different areas and I know that is a matter of bringing them up and I think that .... ..... Wilcox: Well they certainly need to get back to full commission to review uh if it just needed just a little bit of clean up and I would think that the Redevelopment Committee would uh would not drop that but have it to come foreword to review and bring to the commission. Estrada: I think the matter before us is a little bit uh right now a little more serious and deserving of more immediate attention l263H 12 Flores: Estrada: Wilcox: Barlow: Estrada: Wilcox: 1263H than what ~e will be able to do with per~ 1e1 policies uh in the near ture. As for the situation ri~..t now I think we need to as committee we need to determine how we are going to proceed. Uh do we want to do all of this in open session or do we want to talk to some of the staff members in executive session or open session but I think a decision has to be made so that we can get off the dime here. Mr. Flores? Uh, I don't know uh what uh are you suggesting then that uh that uh we uh give the opportunity to an individual to come in and speak to the committee in open session or....... I think the upshot supposedly of the meeting is to be able to make some kind of recommendation to the commission relative to the position of the executive director. Do we want to bring her back from administrative leave uh find somebody, keep her on administrative leave and and uh put somebody else on an interim basis to fill that position or three to recommend dismissal but whatever the recommendation is going to be we need to establish procedures as to how we are going to get to that point and we have all talked about the burning Questions that we have relative to this issue and if we want to ask those Questions of staff persons we need to determine how we are going to do that whether we are going to do it in a closed session or whether we are gong to do it in an open session and if we are gong to go in a closed session we have to understand that we cannot ask Questions relative to Ms. Saul and if we are gong to do it in an open session then it has the other further constraints to it and those are the considerations that the committee has to make. I was the chair of the commission that placed the executive director on administrative leave with pay and uh i believe that it is in my purview to determine that the executive director is either continued on it or off of it. Am I correct. That's true. Certainly the commission with the recommendation of the committee can make a recommendation to you. I don't think anybody, Mayor, is assuming that whatever recommendation we are equipped to make is a determination. All that we are saying is that it is a recommendation from the committee to the commission. I have uh some thoughts on that but I am willing to listen to committee thoughts/recommendations. 13 Maudsley: Well we ha' to be able to resolve this si~ tion I don't believe thal it has been resolved I am as yet uncomfortable with status of the various accounts that proceeds were placed in which is one issue right now. Wilcox: I think that we can talk about those and Dennis correct me if I'm wrong but I think that that is certainly public information and its all there and we can ask any member of staff to bring that foreword. Maudsley: We are just waiting until the district attorney got done doing his thing and the recommendation of the city attorney. Wilcox: But those things uh the accounts where the dollars are we have the back up and the data that indicates where those monies are. Barlow: The only concept is that. as we talked about earlier as we talk about things in this meeting. and that must be related to personnel. individual personnel because that's the only thing that is on the agenda; secondly. just to reiterate what we talked about before. that as long as. assuming there is one. as long as there is an investigation continuing by the district attorneys office anything say we could end up in court and we could be all called to testify. just so that we are aware of that. And we have. our office has suggested that and recommended all along that you not take any investigative action pending an outcome of the investigation. if there is one. All I am saying is that the district attorney has denied in the paper several times that. not denied he has refused to confirm or deny that there is an investigation going on. and I'm just echoing what he has said. Flores: So. we.do and we don't..... Estrada: I agree with Maudsley. I think we have to . ... you know there have been other situations before this body before we have sat in silence for months at a time because of the um admonishments in those executive sessions relative to the information and we've continued to go into the executive session and once you're in there you are locked. you are gagged like forever and ever and can't breathe a word of what you've said and out here on this matter we haven't been into an executive session as yet on this and the council technically has not even been briefed on that whole matter so for all practical purposes uh we're not uh we don't have those kind of restraints as yet. Thank goodness! I too. Mike. am very tired of those..... Maudsley: How can the district attorney of the County of San Bernardino either confirm or deny that a investigation is taken place when it is either being done or its not being done with tax payers money...... 14 1263H Barlow: He's not c 'irming or denying. Hilcox: Checks in the mail. Maudsley: I got an escrow closing next week ....... and so we are expected to honor the request of our city attorneys request to either do not do anything based on the statement that he is either doing it or he's not doing it. Barlow: Alright,Ok....I.... Maudsley: That's ludicrous! He've spent three weeks now and we have to take some action and we've got to move ahead and solve these problems. Barlow: Yes, we all can strongly presume that there is something going on because we have been informed that people have been called over there for information so we know that there is something going on. He've been informed of that in public session. Estrada: Thank you Mr. Barlow! Maudsley: Hell maybe they were being interviewed for the big spin. Maudsley: Anyway. Estrada: How do you wish that we proceed? Maudsley: Uh, uh, on the...on the financial issue those question that I have I intend on submitting a.....uh......a memo to the Mayor and to you and my questions, and so on, certain specific questions on the status of all the various accounts those questions I have answers to and copies to the fellow commission members to see if they also have the same questions. I think the other issue in regards to the personnel of who did what uh I think its asking a powerful lot of some of these people that were uh, have knowledge of this to come into a straight open session and uh, and uh testify but uh, I don't have the slightest uh, uh. hesitation to uh ask the deputy director particularly to uh, come into the open uh, to the commission meeting on Monday and uh answer questions uh in regards to her knowledge of how these things happened within the Agency. Estrada: Hell why..why...why does it have to be done on the meeting on Monday as opposed to the meeting today? Hilcox: It doesn't need to be in closed session. That doesn't need to be in closed session, right? 15 1263H Estrada: What is this meeting about anyway? Maudsley: I don't knL_ you called it. Estrada: Well, that's....that's.....that's the point! I mean we've discussed the whole question of wanting to get some answers and I thought that was what we were trying to do here unless Mike...did I misunder.....was I asleep last night up on the Maudsley: No, maybe I misunderstood you Esther because uh. Estrada: OK! Maudsley: I have an appointment at 4:00 and I will be leaving. At this point the tape is flipped over to continued on back side. Estrada: And can somebody inform ...... Maudsley: Well if I could, with respect to the chair I think that if the issue is important enough to conduct in this open meeting than it is important enough to conduct in full commission..... Estrada: The idea was to come up with some kind of recommendation to the full commission! and, if...if...the recommendation is just to have the....the....hearing to the full commission on monday we could do that by putting it on the agenda. We don't have to have a committee meeting. But I saw as the committee! we are the RDA committee! There is an issue, there is uh, there is a issue that is....that is affecting the RDA of which we are the committee! We have some concerns, or at least I thought we all shared some concerns relative to the management of the agency and if that's not the case then I'm....I'm in error! And then the purpose we've been talking about this meeting for over a week! Scheduling a special meeting to sit down and discuss some of these issues. Again, maybe I was off on a cloud somewhere but that's what I've been hearing so I called the meeting and here we are now and if its the idea of making a recommendation to have it heard before the commission on Monday all we have to do is put it on the agenda! But, I suggest to you that we are committee and we have responsibility as committee and I think we need to....we need to get some... .you know. ...we are going to have some uh.... ..answers to some of these questions. We don't know what happened! All we know is what we've been told by the City Attorney thus far. And, what we read in the paper. Flores: I uh....I saw that audit report that was performed that was not....I was not happy with that audit report. 16 l263H Estrada: Flores: Wilcox: Estrada: I don't tl'dllk anybody was happy with that 'dit report! It was uh, to me I've seen a lot of audit reports and so forth and seemed to be slanted as far as I'm concerned because...well that's just a feeling that I have. Because we don't have anything else to compare it too and we can certainly you know, we can certainly do another audit if that is going to get some answers uh, that are going to uh, give the commission uh, what they are looking for. And I don't know what they are looking for. And I think if we identified that then we could get the resolution of it. With its investment pOlicy that's easy to get at. There are a number of things mayor. That's our own internal pOlicy whether our policies are...whether our policies provide uh...uh a good check and balance for what needs to be done whether they don't. Whether they've been violated! Whether we have a difference of opinion and who cares if we have a difference of opinion we are not quite sure what. ..what policies we do have...we can say we have personnel policies and somebody says we don't...somebody's afraid that the policies as they....as they exist aren't going to protect the employees that...that are there now and that have participated in this and that they maybe penalized by the executive director when she returns, if she returns. So, we want to implement some other measures now or recommend to the commission to implement some other measures to protect them. What are those? We are the committee we are supposed to be talking about these things what are we doing? And I understand that you have to go Mike at 4:00. Maudsley: Esther, you called the meeting for personnel. Estrada: Uh huh. Maudsley: I don't know whether I can talk about the investment policy. Barlow: Only as it applies to this. Maudsley: Alright, you are tieing my hands, I'm not tieing yours. Barlow: Uh huh. 1263H 17 Maudsley: I will try j ask every question I can pos Jly think of in regards to tllis issue to take this thing further and make out in terms of personnel uh to get this thing going I have no....I have no problem with that at all and I will walk in the other office and I will get my folder on this and I will cancel my other appointments for the afternoon. I consider this meeting that important so go ahead and call it on. Estrada: Should we advise Ms. Saul that this is open and if she wishes to participate to come down. Barlow: Are we talking about directing anything toward that area or keep it away from her? Flores: Wilcox: Flores: Arvizo: Estrada: Arvizo: Estrada: Wilcox: Estrada: Barlow: Flores: l263H If you don't notify her I would suggest you not ...you...you...you just as if we were in closed session you are not to talk about it. The thing is that uh, if we notify her now and we are in open session we might not give her the opportunity....she might....she might want counsel..... That's right so you can't put that together uh, no, uh, you can't...you can't do that in a short fuse ...... When you discuss investment pOlicy you will inevitably be discussing .... ....we don't know that! her...investment policy. Not her investment policies, the agency's investment policies. Dennis uh, Dennis if uh, if Sandy's responds to the issue, this particular issue is this uh something that the director should be here for or not. I don't know that it was Sandy that had the control of this particular investment. We could find that out from her. The question can be couched to her...we have control the answer can be yes or no. Yeah, I indicated that, Mayor, before you came in that in all this area just about whatever you talk about could easily lead to the director, whether it does or not I do not know, but it could lead to the director and if you do then you've got a problem. If it does you have to change your line of questioning. 18 Estrada: Barlow: Estrada: Body: That's why have attorneys, to steer us direction. ~afe direction. :he ri ght You'll notice that the attorney's that draft up the law and then the attorney's that interpret it. And then there's sometimes they are the same ones. General conversation. At 3:25 p.m. the body took a break. During the break Sandy Lowder was called to the committee. Roll Call: Committee Member Esther Estrada, Chairman; Committee Members Jess Flores, Michael Maudsley; Sandy Lowder, Deputy Director Redevelopment Agency; Lorraine Velarde, Manager, Administrative Services; Dennis Barlow, James Penman, City Attorney; Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to Council; Rosalie Morales, Recording Secretary. Sandy Lowder was asked to identify herself for the record. Lowder: Estrada: Barlow: Estrada: Lowder: 1263H Sandy Lowder, Redevelopment Agency. We are in open session and this is uh, this is uh, what this is uh, for the purpose of discussing personnel matters. So, whatever questions we have uh, will be tied into one way or another into into personnel urn if there not I'm sure counsel will remind us of that. Yes I will, thank you very much. I have...1 have uh questions....committee answer uh, being uh. ...(long pause) the investments is the deputy director privy to uh, the authorization of those investments. Yes, 19 Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: Barlow: Lowder: Estrada: Lowder: l263H The investmpnts that we made uh in uh Marci ~nd April you were advised of Jose investment that were goinS .0 be made? Yes. Are you familiar with our investment policies? Yes. What is your interpretation of that policy. The policy provides that you get the highest yield at limited risks available to the Agency. It has a section in it that talks about investing with the local banks in the there is a primary section in it that talks about .... provides that if we do not invest in local banks we should find the highest yield outside of the area. Here you aware of uh, the uh, firm that he was going to making the investments. Yes, through phone conversations. Through phone conversations. Is this the first time that you ever dealt with them. Yes. Do you know whether...once. ...once the decision was made on those investments did you know how much was going to go where? No. I knew that the full 13 was going to be invested through Astor Hood. 13 million. 13 million. And yet we would have a higher interest rate, a higher yield than we would with local banks. Has there any uh, is there any way...or was there anything that was provided to you or were you privy to anything that that uh assured you as the executive that that these investments were protected by some form of insurance? I think there are two kinds of insurance. Uh, its your uh, its your federal insurance you have to ask the insurance people. He were told that the investors would be in matured accounts thats why it insured it has to be $100,000 at maturity. If you don't buy at $100,000 CD because that isn't (untranscribable) program of the interest you are going to earn and that each one would be a $100,000 at the time of the highest interest rate. The matured value is a $100,000 on each one (Estrada interrupting--untranscribable) or FDIC insurance. 20 Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: But. the matured value and the fact that +hey were protected by some in' "ance are two different things. Yes. the certificate you get generally in the corner of each one and it depends on whether they have FSLIC or FDIC they usually have a seal or something its in printed form or it says it down at the bottom of the certificate of deposit. Your savings and loans if there federal savings and loans or state savings and loans they have it I'm sure. So. did you see those? Not at the time you make the phone call. You go to the investment broker that she was aware at the time that we had to invest with ____ insurance savings and loans. yes. Have you seen those certificates? I have seen some of them. But I have not researched and looked at everyone. no. Estrada: So. you're not in a position to tell this committee that the all of those certificates are backed up by some. Lowder: Not 100% to go back and say that I have looked at each one but the understanding between us and the investment broker... Estrada: Whats that? Lowder: Was such. yes. uh huh. Estrada: OK. Flores: This agreement you say with the investment broker was oral? Lowder: Has oral. yes. Maudsley: Sandy. have you or anyone in the agency or have your directed anyone since you are the director to ascertain all the plans of financial institutions at this level to. ...how many or which ones are federal or state chartered? Lowder: No I haven't. Maudsley: Do you personally know that there is a difference between a state chartered financial institution and a federal chartered financial institution? Lowder: In difference as far as the regulations? 1263H 21 Maudsley: As far as the regulations. Lowder: I'm sure .1at there are some (untranscibau'le- coughing in background). Maudsley: Do you personally know, or have you asked anyone to ascertain bank regulations from other states are the same as ours or different than ours. Lowder: No I do not know, I've never asked. Maudsley: Have you in your position as acting director asked anybOdy to ascertain if any of the states that you have placed has different insuring of regulations affecting the state charter institutions other than FSLIC or FDIC? Lowder: No I haven't. Maudsley: Did you in your position as deputy director know that the bond proceeds were going to invested primarily out of the state of California? Lowder: No. I don't think I'm notified when they are being invested outside of california. Maudsley: Have you ascertained how many accounts how much money is invested in California vs. out of the State of California. Lowder: No I haven't. Maudsley: Do you know how many bank accounts or does anybody...any RDA ascertained how many bank accounts are in the state of Texas? Lowder: Are you talking about our investments? Maudsley: Our investments. Lowder: No. I think there are a few, I don't really know. Maudsley: 37. Barlow: Are you talking about through this, through this, this... Maudsley: Through this last transaction. Maudsley: Did you yourself or did you ask anybody to ascertain the financial condition of any of the financial institutions and these bond proceeds the 13 million was going to.. ..verified by any of the financial institutions. 1263H 22 Lowder: No. Maudsley: Can you tell me what agency policy is on prior to this on verifying financial condition of financial institutions where our moneys are depositing? Lowder: I don't believe that we asked them uh, for annual statements or audit statements. I do not that at the time we put them there we ask them whether they have the collateralization. He want them to have collaterialziation. Maudsley: Do you believe the collateralization figure to be 1.25 or it could be any other figure? Lowder: 1.25 is what I understand it to be. Maudsley: The uh......have you authorized or has anyone in the agency that supervises placed money in any institution other than a bank in the past year. Lowder: Not that I'm aware of. I've only recently been issued copies of the investment activity report. Maudsley: Are you aware that they place any money in the savings and loans in the last two years? Same answer? Lowder: Same answer. Maudsley: Have you..... Lowder: Excuse me, if I may when we count uh, by the council members fiscal agents we do the investing for us you are talking about (untranscribable) other business ventures, right? Maudsley: The money that we have expressionary according to....have you in your position ..... did you in your position as deputy director or have you in your position as acting director either yourself or asked anyone to compile a list of any non-bank discretionary investments in the past two years. Lowder: No. Maudsley: In a week? Lowder: No. 23 1263H Maudsley: Have you ~~.sonally read the investment pOlicies of the redevelopment agency? Here you present at the commission meeting of December 21st 1987? Full commission voted to adopt that policy. Lowder: Yes, I'm sure I've must of been. Maudsley: Can you recall off hand anyone else that sat at that meeting of the redevelopment agency? Lowder: I can only speak generally and at almost at all our commission meetings Glenda, I, and Lorraine are present. Barlow: And the clerk. Lowder: Correction-secretary. Maudsley: Since you have been appointed as the deputy director have you discussed either by yourself or with any other member of the agency investing money in a savings and loans with the investment Bank of America Miller and Schroeder financial consultants? Lowder: Investing money with them you say? Maudsley: Have you discussed investing money in a savings and loans with the representative from Miller and Schroeder? Lowder: No, oh, excuse me. At the time this issue came up Jeff mentioned to me just a few days before it was going to close what the rates we were getting. I don't know what the rates are just off hand but I could check them. Hell let me know what rates you have he said because I have this company that I know that is really aggressive in the field and they might be able to get you a better rates than you are getting local. That was the jest of the conversation. Maudsley: Do you recall if that conversation had been in person with them. Lowder: Oh no, it was not in person with them. It was in Los Angeles at the closing dinner. Closing dinner? Maudsley: What's a closing dinner? Lowder: Miller and Schroeder had invited us to Los Angeles for a dinner to celebrate the closing of bond issues. 24 1263H Maudsley: For the ~ord can you tell us who was i Attendance at the closing ~.nner. Lowder: Uh myself, Lorraine, Barbara, Glenda, Katherine Peake, Nancy Davison, John Wood, Marsha Fleming and invited almost anybody from staff who could attend. Then we had the people from Miller and Schroeder and Jeff's bank note and the underwriter and the trustees from Security Pacific..... Those closing dinners are something are something considered normal or regular. Maudsley: Lowder: He try to have them. He've probably had two in the past five or six years. Maudsley: Did Mr. Kinsell tell you why he was recommending ..... Lowder: His comment was that it was a probable better interest rate and supposed to be a better investment. Mauds1ey: Did he uh, in the relationship that he had with Miller and Schroeder had with (Maudsley voice too low-mumbling> Lowder: No, not at that dinner I did ask him later and he said that he only recommended them because the lady was so aggressive. That she is in there bright and early in the morning and pushes and finds you the best interest rate possible. Maudsley: Long Pause. Maudsley: One more time, going back to the investment pOlicy of the redevelopment agency have you read that policy since uh all this began. Lowder: yes. Maudsley: Do you know when our staff first recommended pOlicy as it is now written to the commission (Maudsley too low - untranscribable>. Lowder: No, I...I really don't know it's been around a number of years and it's been revised each year because it must be presented to the state every year. Body: Talking at once. Barlow: Revised? Lowder: Readopted every year. 25 l263H Barlow: You can ~~v revised. Lowder: Revised. Maudsley: Revised. Maudsley: Do you know if our staff has ever participated in a revision of that policy since its conception. Lowder: No I don't know. Maudsley: Since you have been the deputy director uh, do you know if our staff can you remember if our staff has participated in a revision of the investment policy redevelopment agency? Lowder: Since I have been deputy when the Agenda came before my desk this time and I asked Barbara if we compared the item if she was....was there any revisions to it. If this was the same policy as the prior year. She told me it was the same policy as the prior year. He just needed to readopt it because we had to present it to the state yearly. Maudsley: Ok. Do you recall why the investment policy was voted on twice last year on two different occasions? Lowder: No. Maudsley: Do you recall a commission meeting I believe in March of last year in 1987 where the full commission voted to reconfirm or adopt the investment policy? Lowder: No. Maudsley: Here you the deputy director of the agency in March of 87. Lowder: No. Maudsley: Are you aware of any discussions with any member of our staff concerning the interpretation or explanation or any discussion whatsoever on the rest of the policy with any member of the law firm of Sabo and Deitsch? Lowder: Hhen it first came up? Maudsley: At any time. 26 1263H Lowder: Oh. I h~ asked Tim if he could please Jk at this for me because 1 _ou1d see that nothing was done wrong and when all this came down I asked him to read this and tell me if anything we've done is wrong because I sure can't see it. Mauds1ey: Did you have any discussion you personally with that law firm uh prior to the time that this all went down prior to the time that the money was invested? Lowder: No. On this issue? No Maudsley: yeah. To your knowledge has any member of our staff referred to the law firm Sabo and Deitsch in regards to an interpretation of investment policy of the redevelopment agency at any time whatsoever prior to the time of investing our money in bond receipts? Lowder: No. Not that I recall. Not that I know of. I know that Dennis was consulted on it. Mauds1ey: Who consulted with Dennis? Lowder: Well I believe it was through Glenda and Barbara Lindseth and Dennis. I Know that when I first talKed to Barbara about this she said that she did not know whether under the investment policy that we could do this and I aSKed her if she could check with Dennis. Mauds1ey: Did you yourself or to the best of your knowledge or any member of our staff participate in any conference call on March 16, 1988? Between uh you, Kinsell and Sabo and other members of our staff concerning closing of Southwest Industrial Park allocation bonds, Central City North allocation bonds. Did you guys have a discussion about closing of the bonds on what to do with the monies on March 16th 1988? Lowder: I do not recall whether a conversation took place on that date or not. Maudsley: Do you remember (Mauds1ey mumbling- untranscribable!) Did anyone from our staff investigate the co1lateralization capacity of the local banks that we've been using to make our deposits prior to the time that the money was invested with Astor? 27 l263H Lowder: During a r~nversation that I had in the ar ~nting department uh Barbara m ~ioned that she had mentioned tllat she had gone to Local banks and that she had gotten new rates and Glenda had asked her if she would check the collateralization because it was such a large amount of money and her report back was that it was only one bank that ...during that week Maudsley: Does the agency have any other funds deposited with that bank? Lowder: I....without looking at our investment activity this week I do not know but I do know that we invest with that bank when we do not have collateralization problems. One week they can and the next week they might not depending on how much they have _____ out. Maudsley: Do you know how much money you have invested with that bank on the date that we invested in collateralization? Lowder: No. If I looked in the investment policy but I don't have those in front of me. Maudsley: Did you or anyone on staff ask anyone to find out how much money they had invested in that bank?..on that day?..on that time? Lowder: No but that was not again an issue because at the time once you acquire the CD you have the collateralization and it stays there for a period of time till it matures? Maudsley: Is all that money collaterialized is with that bank? All 8.8 million? Lowder: Yes. As far as I would know that's the insurance that we have been given by all the local banks. Maudsley: What would have been our procedures Estrada: What point Mike? Maudsley: 8 point 8 million. What would of been regular procedures to insure that the time certificates were collateralized? Lowder: I have asked the accounting department that, Ok. Uh, they say that they have a verbal understanding that they have with all the local banks that we must have with the agency the collateralization before they can acquire investments and they just more or less over the telephone verbally each week what the interest rate is and whether or not they will be able to take our CD's if they have the collateralization. We do not ask for written evidence on a weekly basis after purchasing a bond. 28 l263H Maudsley: Do you receive uh uh an independent certir- -ation of the collatere !ation for purposes of a certii ..:ate of deposit. Lowder: Not that I'm aware of. Maudsley: So we don't have a way of verifying whether the money is collateralized or not. Lowder: I would imagine that if we asked them for it we could have a way but I don't believe we have a way established now I believe its _ way. Maudsley: Did you or do you know if anyone on the Redevelopment Agency staff sent a copy of the Agency's investment policy to Miller and Schroeder. Lowder: I do not know. Long Pause.......1 know that it was discussed on the telephone one thing with an attorney to make determination of whether the investment policy provided that we could make that product. Maudsley: As deputy director at this time were you aware that you had staff members that had told Mr. Kinsell that it was there opinion that the money had to be invested in local banks. Lowder: Was I aware that a staff member told Mr. Kinsell that, No. Maudsley: Did any staff member ever tell you it was there opinoin (background noise). Lowder: Yes. Maudsley: What's your definition of local bank? Lowder: A local banks to me.. ..1 have always read that policy I assumed they meant the San Bernardino Banks because that is what we call on a weekly basis the San Bernardino banks although we certainly cannot call them local banks. There branch offices. Maudsley: Do anyone of the locally owned banks uh or anyone of those federally chartered. Lowder: I do not know. Maudsley: Do you qualify them under the public funds investment act 1934 qualifies Lowder: I have not checked I would just assume they would be but I do not know what bank uses those regulations. 29 l263H Maudsley: Can you I '1 me if we have ever invested . a bank out of the local are~ and by local area I mean San Bernardino area. Lowder: No I cannot. I do know the fiscal agents do our investing for us. Maudsley: Can you tell me when you first found out when the money was going out of state. Lowder: Well. when all of this became an issue because I would have never would of thought going out of state and I still don't think it is an issue. Maudsley: Can you tell me what you thought when you found out that the money was going out of state. Lowder: I did not think of anything. I did not think that there were was any irregularities going out of state. Maudsley: Do you know if our accounting office has determined how much invested income we have lost during the week. months that still made it top vested at our local banks? Lowder: I don't think it's just that. The way I understand it the accounting department just repurchase agreements and we programmed it until such time as they could foreword the money to Astor wood. Maudsley: Do you know who the banks purchased the repurchased agreement (Estrada coughed - untranscribable) equity? Lowder: No I do not know. Maudsley: Can you personally or to the best of your knowledge has anyone on our staff ascertained uh what the......what type of business venture Astorwood Financial Company is? Lowder: They're an investment broker. Maudsley: Do you know if the firm is a corporation? Lowder: I believe I believe live seen Asterwood incorporated on their letterhead. I cannot say for certain. Maudsley: Have you or do you know of anyone on our staff who has ascertained "Astorwood Financial" has ties with Miller Schroeder? Lowder: No I do not know and I don't know that anyone's asked. Maudsley: Do you know if that particular company is a bank or a savings and loan? 30 1263H Lowder: Astorwoor Maudsley: Yeah. Lowder: I don't believe they are either. They're investment. Maudsley: Savings bank? Could it be a savings bank Lowder: Not that I'm aware of, I don't know. Maudsley: Is Astorwood Financial bondable insured? Lowder: I don't know for sure. Maudsley: Does Astorwood Financial carry special liability insurance? Lowder: I don't know. Maudsley: Do you or does anyone on your staff inquire as to why Astorwood was choosen over any other investment company brokerage or whatever? Lowder: It wasn't. ...we did not have a list of investment brokers around. We have not used that avenue of investing. This firm was recommended when we had a higher yield than the local banks and so we went with them to get the highest yield. Maudsley: To the best of your knowledge did anyone on our staff uh submit any request for proposal for broker services with any investment company including Astorwood? Lowder: No. Maudsley: Do you know if anyone on our staff gave fee analysis between various banks. Not the interest, but the fee analysis? Lowder: Between the various banks? Maudsley: Brokers.......any analysis between broker for their services. Lowder: He don't pay them for their service. ...we don't pay them for their service so there was no reason for us to do that. Maudsley: I might disagree, but my but question was to the fee analysis. Someone pays the brokers for their work and my question was did you do an analysis between the brokers? To the best of your knowledge did anyone in our Agency, or you personally, prepare potential earnings interest income being received guaranteed between a numbered brokerage houses....did you shop brokers to see what you get? 31 1263H Lowder: No we do. . shop brokers. Maudsley: If we had taken the money ourselves and had invested in the local banks as prescribed by investment policy that we be charged a fee. Lowder: No. We also on the other hand do not know what the local banks go out and earn on our investments which is exactly what the investment banker does. Maudsley: The investment banker? Lowder: The investment broker, excuse me. Estrada: Astorwood. Lowder: Astorwood. Ok, if we are promised a particular rate from the bank... . Maudsley: Um hum Lowder: say 6% Ok, and we invest with the local bank, that bank then goes out and uses our funds to do other things and make more interest right if we are promised a rate of 7% from Astorwood and then they are able to purchase it at a higher rate that is there ..... that is how they make their money, that's how they stay in business. Maudsley: Can you...could you explain to me how Astorwood guarantees that rate. Lowder: They have. ... the way I understand the way investment bank brokers work is they enter the computer system of all the savings and loans, and lets throw out the United States in there, so there up on this not only a daily basis but a number of times a day and they do this for many cities and many municipalities so they are checking rates all the time so they can tell you on a particular day the rate that they can guarantee you as all this information is being fed in continuously as this is the business that they are in. Maudsley: What kind of contract do you have with Astorwood guaranteeing the rate. Lowder: We have no contract. What we received from them is a computer sheet showing that we would get 7% interest on our investment and breaking it down into the hundred thousand dollar CDs. Maudsley: In your position as deputy director did you qualify the guarantee provided by the computer sheet. 32 l263H Lowder: No but 0 you receive your CD in the ma., and it has the investment.....you don't have to.....that's your guarantee right there. The purchase of your CD. Mauds1ey: Why should I be concerned......why should we be concerned...... with the money that the banks makes by the investment of our money with it? Lowder: We shouldn't. Just as we are not concerned with the amount that Astorwood makes just as long as we get the highest yield. Mauds1ey: If....if.....this hypothetically that the Redevelopment Agency wanted to invest their money in a high interest money account say in the Least Savings Association, Gettings, Texas and if that savings association was paying a rate of 8.51 could the agency go to that savings association and invest the money and get a whole 8.51. Lowder: As long as it had either the security or the collateral as long as there is no risk there. Maudsley: Would we need title to the whole 8.51? Lowder: If you were to purchase it directly from that savings and loan, yes. Maudsley: If the agency were able could we have called savings and loans thought California, ascertained their interest rates do we make direct deposits with any savings and loan in California at our investment criteria? Lowder: Certainly, if we had the capabilities to do that. Mauds1ey: To the best of your knowledge does the agency try to (untranscribab1e - background noise - Mauds1ey mumbling) savings and loan Commission in the State of California? Lowder: I do not know that. Maudsley: To the best of your knowledge does the Redevelopment Agency have on hand a copy of the Rand McNalley, so called, bankers directory? Lowder: I do not know. Mauds1ey: Commonly called the blue book. In your position as deputy director have you ever heard any discussion amongst agency personnel........ 33 1263H 701ft es 3 ~ -thr&ua J.... ..J '7 om Ifft€cJ.. .8 Y ----- temporary C!.ie.rl<. --f.rfi.sr. Tape 3 Maudsley: (Microphone static) personnel..that sells invested the money in institutions of paying in excess of 71 that the agency would have earned the excess interest...with...all of the interest within the agency. Lowder: If we were to have (background noise). Maudsley: Was there any discussion amongst any of the agency staff about our staff seeking to invest these funds without payment at higher interest rates provided by local themselves take advantage of full interest available in the investment. Lowder: None that I heard. Maudsley: Once again, to the best of your knowledge. ...did any of the law firms that represent us or any of the companies that represent us in any capacity negotiated written contract between Astor Wood financial for their services. Lowder: No. Maudsley: To the best of your knowledge did anyone with the authority to do so within the agency or within the commission negotiate contract (background noise) with (background noise). Is it not a fact that upon the investment of the bondabment that there was a difference between that amount of money sent to Astor Wood Financial and that amount of money that was invested in the name of the agency. Lowder: I'm sorry what was that again. Maudsley: Was the amount of money that was in the banks or whatever less equal to or more than the amount of money sent to Astor Wood Financial? Lowder: All the bond proceeds $13 million was sent to Asto Wood Financial. Maudsley: Right. And out of that $13 million ex number of dollars and some change was an amount exactly equal to that! Lowder: Oh, 11m sorry... .... Maudsley: placed on deposit in the name of the Agency! Lowder: We purchased CD's each for a $100,000 at maturity. The amount is less. The principal amount is less. 34 l263H Mauds 1 ey: Ok. WheT ; the money? Lowder: The money is made up of the time..... Mauds1ey: I'm not asking you where the money is made up at I'm asking you where's the $60,OOO? Lowder: The $60,OOO...when you purchase the CD's you purchase them for a $100,000 at the time that they mature so that you are fully covered with the insurance. You are guaranteed a rate of 7% rate. When they guarantee the 7% rate in order to know the amount of money that you have to invest ... the CD has to be made out for ... they have to back it down from the actual interest rate earned on the CD. Some of those CD's were 7.1, 7.4, some was even 8% a little over 8%....it's just a mathematical computation determined what the principal ....that's just the face amount on that note really is. In otherwords if you would have really gotten the same amount on you principal as you set in there and if those were to yield 7% as to what you agreed upon you would still make the same amount of money. Did I explain that right? Maudsley: You explained it just fine as to where the money is coming back as a situation where money is paid up front to an investment broker that it sometimes have a technical term in the investment industry. I'm understanding that if there was...if we were going to buy a 100,000 dollar time certificate uh we would actually only going to pay uh 99,500 dollars but the question here is if we send 99,500 dollars or did we send a 100,000 dollars. What did we do? Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: Lowder: Estrada: 1263H We sent one principal amount of money. ... No, No, No, just uh this is an example. Ok. Did we send a 100,000 or did we send the 99,050? 99,050. Ok, that other 500 dollars, where did that go? The 100,000 dollar CD's because that is where it is going to earn ..... I understand that! 35 Lowder: So you 01 sent....1 ike when you buy a b,- .d..... . Estrada: I understand that. We said 99,050 but is that other 500 stay in the pool of money that we bought some more CDs with or did Astor Wood collect that as his fee for having purchased that CD. Lowder: They didn't take it as...it's just very difficult to explain. If you take the whole 13 million dollars..... Mauds1ey: Sandy it's not very difficult to explain. If I send you 100 dollars and I say please invest this money and there1s only 90 dollars invested there is a difference of 10 dollars. Lowder: But, if you were promised a 71 rate on a 100,000 dollars..... Mauds1ey: Wait a minute, I'm asking you...you try to cover up a front and.... . Lowder: No I'm not I'm trying to explain it if you will please give me an opportunity I will explain it. Mauds1ey: I will be happy to discuss all these discounted rates of interest zero coupon bonds and everything else that wasn't my question. My question is do we have the same amount of money in the bank that we wrote the check for and sent to Astor Wood. Either yes or no. Lowder: Well you don't have any in the bank you have investments that are earning interest you have a CD that is earning interest. You have a certificate of deposit if you take the principal amount on those certificates of deposit and add them up you do not have the full 13. But if you multiply that sum of money, if you multiply the 13 million dollars, use it as a lump sum together you multiply 13 million dollars times 71 and you have a total amount of money that you are suppose to make over the inestment period. But instead of your certificate saying 71 on it now it might say 81, it might say 7.41, it might say 7.11 they all are above the 71 invested rate. Ok. The investment broker takes his fund up fron rather than the interest spread after they have been invested for a year because how would any of us stay in business if we didn't get paid for our service from the other bank that we sell it to a year in the future. They have their computer system, their phones...... Estrada: Ok, I understand this. Sandy you don't have to explain what a corporation has to payout as over head. What we are getting at is the investment broker collected his fees.... Lowder: But not from us. 36 l263H Estrada: I underst J! Lowder: Ok. Estrada: Hell, it is from us because ....... Lowder: No, No Esther it really isn't from us. If you are promised 7% and all of a sudden you get a rate that says 7.5 on it but that point 5 doesn't belong to you who does it belong to? Estrada: Hell it wasn't his money to begin with either. That belongs...that money belongs to this agency. If you would not of had that money to place in there, had the agency not had the money to do business with so its not his money its the agency's money and there was a transaction that took place and the agency was promised 7% and anything above that you know he helped himself too as his fee. Right? Lowder: Right. Hhat he's able to sell it to the...to buy the investments from all the savings and loans that is how they make the i r ........ Hilcox: That's mainly how the local banks make their money. Lowder: Urn, hum. Maudsley: Local banks make their money on investments, we don't care if these people legitimately make money, but the fact is that the Savings and Loans that subscribe to their services will also pay their fee but that is between the Savings and Loans and the investment company. Estrada: Can I ask a question at this point? Maudsley: Yes, but the fact is that we pay the fee. Now, we may recover the fee during the investment period, but we pay the fee for the services. The fee was a percentage of the deal. Nothing illegal about it, sometimes it's called a commission, a premium. You can call it a lot of things, but we pay the fee for the services. Estrada: How many times have we done this in the past. How many times have we hired an investment broker? Lowder: This is the only time that I am aware of. The only time that you are aware of. And so all of the other times we have invested here locally. Estrada: 37 l263H Lowder: That or t' fiscal agent does it. Estrada: Ok. and so what is the difference between that fiscal agent and Astorwood Financial? Lowder: The fiscal agent invests the funds and sends us an investment activity report every month. It's not done through a broker as far as I know. Mauds1ey: But again. if there's a Savings and Loan in San Bernardino that was paying in excess of say anything. and we went out and took here's the money guys. would they have charged us a fee for the services? Lowder: No. Mauds1ey: Would our money have been invested and if it was collateralized. protected. and ... Lowder: If we purchased the $100.000 and under. yes. Mauds1ey: Do you believe it's proper Agency policy to investigate the financial condition and the credibility of a financial institution where we have our money? Lowder: The way I understand it. is as long as you are sure ... Mauds1ey: I'm just asking for your opinion. I wasn't asking for an analysis. just asking for your opinion. Lowder: No. I mean we could with every bank that we deal with and every savings and loan and with everyone the that the fiscal agent has. but as long as you have your co11atera1ization or your insurance. you are secure. Mauds1ey: Well. moving right along. do you know or have you been told by any member of our agency staff why I ask where the financial placed agency funds in none1igib1e institutions? Lowder: I am not aware that they do that. Mauds1ey: Are you aware personally that they placed money in California Thrift? Lowder: Oh this is the. yes. this is the one that we had to retrieve. Mauds1ey: I will admit that it's only $332.000. not a lot of money. Can you tell me when you found out that Astrowood Financial had placed funds in two ineligible California institutions. 38 1263H Lowder: Right sho y after they were invested wit.., a few days. Maudsley: Can you tell me what you personally did about it. if anything. Lowder: He were advised by the financial institution as far as I know. One was going through a merger and could not accept the funds. Maudsley: He asked personally. Lowder: Oh personally, no. Hhat did I do, no, nothing. I did not know about it until the day they told me about it. Maudsley: Did you personally instruct any of our staff to take action in regards to the deposits of those funds. Lowder: No. Maudsley: Here you personally approached by any member of our staff who suggested verifying the eligibility of all financial institutions money had been placed with in regards to their eligibility to receive public funds. Lowder: No. Maudsley: Did you ever have a discussion with any of our agency staff in regards to their suggestions and desires to send letters to each one of the institutions and verify if they eligible to receive public funds. Lowder: There were letters prepared but it had nothing to do with whether they were eligible to receive our public funds. It was a letter that the Accounting Department had prepared to each one of them just telling them that we were a public agency. I assumed that they knew we were a public agency and that every on one of the cards we wrote that we were a public agency. Maudsley: In your opinion was it then and is it a good idea now to verify that each one of those institutions can lawfully receive public funds? Lowder: I think it's a good idea. Maudsley: Can you tell me why you have not done anything about it in your position as Acting Director. 39 l263H Lowder: Well, ma y because Astrowood Financial in this business, they do this for many municipalities throughout the area. We have used them for this service. They Knew what we had to have. We have certificates of deposit from federally insured or insured savings and loans. I felt they were secure. Estrada: What other municipalities? Lowder: I have just been told by Mr. Kense1 that these groups work throughout California investing for many municipalities. Mauds1ey: Sandy, I believe you told me when we began this the strange oddicy that you had not confirmed or had anyone to the best of your knowledge in the agency confirmed that all of the money was placed in federally insured federally guaranteed accounts and you just said that one of the criteria of why you didn't do anything about this was because of the information (untranscribab1e-mumb1ing) which way is it? Lowder: Well Mike, it's correct I have not looked at every single certificate of deposit and seeing whether it has something written on it that says it has it, as physically for FDIC. That is correct, I have not looked at everyone. Although when we have been talking with them they know that that's the reason we purchased the $100,000 or less. It's because you require the insurance for it. Mauds1ey: Again, just for the record, let me ask, to the best of your knowledge are banking regulations different from state to state in the United States? Lowder: I don't know. Mauds1ey: Would it seem reasonable to assume that because banks historically haven't controlled intrastate rather than interstate that the banking regulations of each state in the United States might well be different. Lowder: Certainly. Estrada: Sandy could we get back a minute to Jeff Kinsell urn, from who recommended Astor Wood. My understanding that Jeff indicated that supposedly that Astrowood Financial would do this investments at no cost. Now, you still believe that he did it at no cost. Lowder: I absolutely do. This is a general practice with investment brokers and a general practice in municipalities to use the brokers to get the best interest rate that they can. 40 1263H Mauds1ey: Lowder: voice: Lowder: voice: Lowder: Estrada: Lowder: It is thf enera1 practice of municipa1it ~ to use brokers or to get th~ best interest rates? Both. Did Chuck ever comment to you on his interpretation of the investment policy. Yes, he did. What did he say to you? He said that the reason that the state adopted the regula- tions requiring investment policies was to protect the municipalities and to get the highest rate and that if you use the local banks, you must make sure that you have the highest yield from the local banks. His interpretation at that time when we were doing was that the states need to assure that the local banks were not giving the municipalities a lower rate just because they are the local banks in the area. And it was to the municipalities benefit that you have this type of investment policy to make sure you get the highest rate if you were investing locally. There is also a statement in here about the money while all of this was being somewhat negotiated with Astrowood that the money was rolled over at First Interstate approximately seven days. Have you calculated what that loss was? The rollover was just that they just repurchased a CD and just extended it. There was no loss. Every person is talking at once here and you can't tell what anyone person is saying. Estrada: All I'm saying is at that time, there must have been there were some other rate change. So at the time, there were these rates and I'm saying since they got locked in there and they rolled them over, what was the difference between that rate and the rates that were taking precedence at the time, what that loss might have been. Lowder: I am sure we could calculate that but I don't think that it has been calculated yet. Maudsley: Sandy, do you know what the FDIC policy is Federal Deposit insurance corporation policy is in regards to how many FDIC insured accounts you can have with anyone bank? 1263H 41 Lowder: No, I dor" , Maudsley: Who in the RDA, in your oplnlon, would be the most qualified to answer that question? Lowder: Either Glenda or Barbara Lindseth. Estrada: Do you know Sandy, how the $60,000 has been entered into the books? Lowder: That posed a problem for Barbara in the beginning because she was assuming it was a fee also. When all this happened I asked Rick Burns if he could come in and prepare a report on it. Estrada: For the record, can you tell us who Rick Burns is. Lowder: Rick Burns is with the firm Thomas, Burns and I can't remember the third name. They were the City auditors for many years. Estrada: City auditors? Lowder: Yes, for many years. Wilcox: Thomas, Burns and Smith. Maudsley: Had he ever done any work for the agency? Lowder: They have done this type of work for the agency. This is why I recommended them to the Mayor when we were talking. Because a few times in the past when we have had some problems and we needed some investigating accounting, Rick was who we called for this. He was very thorough and very quick. Maudsley: They are previous employees of the agency. Estrada: Employees? Lowder: Not employees. Maudsley: The agency has employed them previously. Lowder: Contract, yes. Maudsley: How many times prior to this? Lowder: Twi ce that I I m aware of. Maudsley: Can you tell me what those two times were? 42 l263H Lowder: They wen )th per sonne 1 acti ons. Maudsley: Did anyone from the Redevelopment Committee or the Commission, with the exception of the Chairman, ask that this audit be conducted? Lowder: No. Maudsley: Was an RFP submitted to authorize this? Can you tell me, as you apparently authorized it, what you asked them to do? Lowder: I asked them to look at our investment policies and look at the report that Barb had prepared, analyze it and submit a report back to us on whether the investment activity was legal and prudent as far as accounting goes. Maudsley: Let me get this straight. You personally asked them to determine if, in their opinion, that the investment was legal and prudent. Lowder: In accordance with the investment policies, and using the investment booklet, if this was legal and prudent, in so far as investment activities in general accounting practices go. Maudsley: Can you tell me what the qualifications are for Mr. Burns to make a legal opinion. Lowder: Well, I don't believe he gave a legal opinion in that. That was probably a poor choice of my words. Maudsley: Can you tell me what the qualifications of Mr. Burns are to make such an opinion of the investment policy of the Redevelopment Agency? Lowder: As Certified Public Accountant, he or his firm has done our audit once I know in the past, and he has been City Auditor numerous times. Maudsley: Did you ask any lawyers for a legal opinion of the investment policy? Lowder: Only in so far as I know that staff had talked to Dennis and I just asked him that one day, "what's up?". Maudsley: To the best of your knowledge did you in either your capacity as Deputy Director or Acting Director ask or direct anyone to ask any member of the Redevelopment Committee or Commission including the chairman to interpret of the Redevelopment Agency investment policy? Did you ask anybody? Any of those? 43 l263H Lowder: No. Maudsley: We gotta take a recess. Estrada: On the City Attorney's advice, we are all going to the bathroom. Reconvened Estrada: Mr. Maudsley do you have any further questions? Maudsley: Oh, no. Estrada: Mr. Flores? Flores: No, I don't have any. Estrada: Sandy, do you have anything you'd like to add? Lowder: No. Estrada: Ok. Well, I think what most of it (untranscribable) one way or another I think what we will be doing is we will be reporting what took place here to the Commission on Monday and I think we would like to keep whatever information we can in terms of ensuring the Commission that we (untranscribable) and perhaps in the form a memorandum some of the issues that have not been cleared up at this point in time the point about the brokerage. And I would like for the record, I think we need to know how that story (untranscribable). And with that ... Barlow: I would like to ask a question. What type of an item do you want on the Agenda for this to be discussed. Estrada: Um no, I don't think so. Barlow: For instance, you could put an item on to discuss investment policies. You could put an item on to discuss personnel, just like we have been doing. Arvizo: We could discuss the newspaper article. Maudsley: I think maybe we should discuss both. Wilcox: I think there needs to be a discussion on the investment policy and if that's to be reviewed and/or recommended changes. Estrada: Maybe we need to put both of those items. 44 l263H Maudsley: I may ser )andy a letter and ask her abo, the financial status of those . but there's no way that they can possibly get that work done by Monday. So I can either tell you or send them to you whatever you like. but you can't do it by Monday. so please don't try. Wilcox: I would like to ask a question. Sandy. when we deal with our fiscal agents. do we know where they place our money. Lowder: Yes. we receive a monthly investment activity report that they mail to us to tell us where they have placed it and what interest they have earned. Wilcox: Are those investments that are in California. or do we know. Lowder: No. I do not know just off hand. But I am sure that the addresses I am discussing are on this report. I know it is a computer listing. It has the name of the ... Wilcox: When we use other fiscal agents that you mentioned. not just this one. but other fiscal agents that we use who invest our money. Lowder: They each send us a monthly investment activity report that tells us the interest earnings and where it has been invested. I'm not sure whether it has the address of each one of these or not. but I will look and see. Wilcox: Ok. And on the date that this investment was made. was a decision made to go with Astrowood. what was the top interest rate that was available at a local bank? Lowder: It was 6.15. Wilcox: And who was that with? Lowder: Bank of America. Wilcox: Are there any further questions. Velarde: On the items pending should personnel be a closed session or an open session or is this a dumb question I'm asking? Barlow: Why don't you put it closed or open at the option of the Commission. Flores: When we came in here it was per closed. and you said we could go over. 45 1263H Barlow: As long c you have the opportunity, put that way. on the Agenda Flores: He can put it closed and we can go open. Barlow: That's right. I'll have the verbage then by the..... Velarde: Barlow: Sure. Hilcox: Hill we have these minutes transcribed verbatim by Monday? I know that's a difficult job too. secretary: I'll camp overnight Mayor. I'll do my best. Estrada: Hhen are you going to do this because I would like to listen to them again before. Secretary: If Phil could give me a copy of this tonight, so that first thing in the morning I can just go ahead and start transcribing this as soon as the computer system is up. Estrada: Ok, no other questions, then this meeting is adjourned. Thank you. 46 1263H