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Home My WebLink About10-03-1988 Regular Meeting Roll Call Present: COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENDA Regular Meeting October 3, 1988 11:00 a.m. Absent: PUBLIC: Motion: Brief comments by general public. That the motions, indicated by Consent Calendar Items 1 through 5, be adopted, except for ____,____,____,____ -------------------------- CONSENT CALENDAR (1) APPROVAL OF COMMISSION MINUTES MOTION: Community Development Commission Move to adopt the Commission Minutes of September 19, 1988. 1 October 3, 1988 1526R (2) UPTOWN REDEVELOPMENT PROJECT AREA - CITIZEN ADVISORY COMMITTEE MINUTES MOTION: Community Development Commission Move to receive and file the Uptown Redevelopment Project Area Citizen Advisory Committee Minutes of August 25, 1988. (3) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGING OF NOTES RECEIVABLE REPORT FOR THE MONTH OF AUGUST 1988. MOTION: Community Development Commission Move to receive and file the Redevelopment Agency of the City of San Bernardino Aging of Notes Receivable Report for the month of August 1988. (4) SAN BERNARDINO REDEVELOPMENT AGENCY - QUARTERLY UPDATE MOTION: Community Development Commission Move to Receive and File the San Bernardino Redevelopment Agency - Quarterly Update. (5) NW - ASSESSMENT DISTRICT MOTION: Community Development Commission Move to receive and file information item. END OF CONSENT CALENDAR (6) CCN-PENTHOUSE INVESTMENT CORPORATION - CERTIFICATE OF COMPLETION MOTION: Community Development Commission Move to authorize issuance of a Certificate of Completion. (7) SECCOMBE LAKE AREA AD HOC COMMITTEE CENTRAL CITY SOUTH STUDY AD HOC COMMITTEE MOTION: Community Development Commission Move that the Central City East Committee and the Tri-City Committee be disbanded. 2 October 3, 1988 l526R (8) MBM CORPORATION POTENTIAL - TRAVEL EXPENSE REIMBURSEMENT MOTION: Community Development Commission Motion to approve reimbursement of $3,072 in air fare and travel expenses to MBM Corporation. (9) NW PEC BUILDING #1 MOTION: Community Development Commission Move to authorize Lon's Electrical Service to repair electrical problems existing at the Public Enterprise Center in an amount not to exceed $15,000. (10) TC - FIRE STATION MOTION: Community Development Commission Move to approve execution by Chairman and Acting Secretary of Grant of Easement to Southern California Edison for Fire Station located on Vanderbilt Way in the Tri-City Project Area. (11) OWNER PARTICIPATION AGREEMENT - MARUKO, INC. ~qnoN~ \ , , '0 il.&1 < '\' 1 ~ Mayor and Common Council (, j'/ ,~"\'" ,,/ '-V>>fY v. 'ILl MOTION: (; \ A. \ I i / / Move to adopt RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LETTER TO MARUKO, INC. PURSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. Community Development Commission B. Move to adopt RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LETTER TO MARUKO, INC. PURUSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. 3 October 3, 1988 1526R Roll Call Present: COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SUPPLEMENTAL AGENDA Regular Meeting October 3, 1988 11:00 a.m. Absent: PUBLIC: Brief comments by general public. (1) CLOSED SESSION MOTION: ;)/ l \>> ,,\( ) i ,~ - fb Jil' :~ Ji f~ iV" \J'Y / ~/ c IDC( - ~ Y .IJ )f p-J./ . I .f\1\ IVY ,,1/ , \i\.l} i(;~ ' Mayor and Common Council Move to conduct a closed session pursuant to Government Code Section 54956.8, the Mayor and Common Council of the City of San Bernardino will 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 the price and terms of payment for the purchase, sale, exchange or lease of real property. The real property which the negotiations concern is generally located at 1535 w. Highland. Lf.: llV Of: cBS 89. )j(j318 AJ.IJ-Q3^1303~ 1 MOTION: Community Development Commission Move to conduct a closed session pursuant to Government Code Section 54956.8, the Community Development Commission/Redevelopment Agency of the City of San Bernardino will convene in closed session to discuss with it negotiator the purchase, sale, exchange or lease of real property, and to give instructions to its negotiator concerning the price and terms of payment for the purchase, sale, exchange or lease of real property. The real property which the negotiations concern is generally located at 1535 W. Highland. ADJOURNMENT Community Development Commission The Community Development Commission/Redevelopment Agency meeting adjourned to October 17, 1988 at 11:00 in the Council Chambers, 300 North "0" Street, San Bernardino, CA 92418. l537R 2 COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO M I NUT E S Regular Meeting September 19, 1988 11:13 a.m. The Community Development Commission/Redevelopment Agency meeting was called to order at 11:13 a.m., on Monday, September 19, 1988, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California, by Chairman Evlyn Wilcox. ROLL CALL Roll call was taken with the following being present: Chairman Wilcox; Members Jack Reilly; Jess Flores; Michael Maudsley, Tom Minor; Valerie Pope-Ludlam, Norine Miller. Absent: Esther Estrada. STAFF PRESENT James E. Robbins, Acting Executive Director; J. Lorraine Velarde, Administrative Services Manager; John Hoeger, Development Division Manager; Barbara Lindseth, Accounting Manager; Dennis Barlow, Senior Assistant City Attorney; Margie Vance, Recording Secretary; Shauna Clark, City Clerk. PUBLIC: Brief comments by general public. There were none. CONSENT CALENDAR (1) APPROVAL OF COMMISSION MINUTES Community Development Commission Member Minor made a motion seconded by Member Miller, to adopt the Commission Minutes of September 6, 1988. The motion carried by the following vote: Ayes: Members Flores, Maudsley, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: Reilly. Absent: Estrada. September 19, 1988 1525R (j) (2) REDEVELOPMENT COMMITTEE MINUTES Community Development Commission Member Minor made a motion seconded by Member Flores. to receive and file the Redevelopment Committee Minutes of September 8. 1988 The motion carried by the following vote: Ayes: Members Reilly. Flores. Mauds1ey. Pope-Ludlam. Minor. Miller. Noes: None. Abstain: None. Absent: Estrada. (3) UPTOWN REDEVELOPMENT PROJECT AREA - CITIZEN ADVISORY COMMITTEE MINUTES Community Development Commission Member Minor made a motion seconded by Member Flores. to receive and file the Uptown Redevelopment Project Area Citizen Advisory Committee Minutes of June 16. 1988 and July 21. 1988 The motion carried by the following vote: Ayes: Members Reilly. Flores. Maudsley. Pope-Ludlam. Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. (4) DEVELOPMENT ACTIVITY REPORT - AUGUST 1988 Community Development Commission Member Minor made a motion seconded by Member Flores. to receive and file the Development Activity Report for the Month of August 1988. The motion carried by the following vote: Ayes: Members Reilly. Flores. Mauds1ey, Pope-Ludlam. Minor. Miller. Noes: None. Abstain: None. Absent: Estrada. (5) PENALTIES FOR EARLY WITHDRAWAL OF FUNDS IN INSTITUTIONS WHERE FUNDS HAD BEEN PLACED BY ASTORWOOD FINANCIALS Community Development Commission Member Minor made a motion seconded by Member Flores. to Receive and File the Report on the penalties incurred by the Redevelopment Agency of the City of San Bernardino for early withdrawal of funds placed in institutions by AstorWood Financia1s. The motion carried by the following vote: Ayes: Members Reilly, Flores. Mauds1ey, Pope-Ludlam. Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. END OF CONSENT CALENDAR 2 September 19. 1988 1525R (18) CLOSED SESSION Community Development Commission Proceed to conduct a closed session pursuant to Government Code Section 54956.8, The Redevelopment Committee of the Community Development Commission/Redevelopment Agency of the City of San Bernardino will 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 the price and terms of payment for the purchase, sale, exchange or lease of real property. The real property which the negotiations concern in generally located at 1535 W. Highland. Member Minor made a motion seconded by Member Flores, to recess to closed session. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. MEETING RECESSED At 11 :15 a.m., The Community Development Commission/Redevelopment Agency recessed to Closed Session. MEETING RECONVENED At 11 :43 a.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 Jack Reilly; Jess Flores; Michael Mauds1ey, Tom Minor; Valerie Pope-Ludlam, Norine Miller. Absent: Esther Estrada. STAFF PRESENT James E. Robbins, Acting Executive Director; J. Lorraine Velarde, Administrative Services Manager; John Hoeger, Development Division Manager; Barbara Lindseth, Accounting Manager; Dennis Barlow, Senior Assistant City Attorney; Margie Vance, Recording Secretary; Shauna Clark, City Clerk. Member Miller made a motion seconded by Member Flores, to continue the item to the afternoon session to receive any additional information which might become available. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. 3 September 19, 1988 1525R (6) SALARY INCREASES FOR THE GENERAL EMPLOYEES OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. Community Development Commission Member Pope~Lud1am made a motion seconded by Member, Reilly, to approve salary increases for the General Employees of the Redevelopment Agency of the City of San Bernardino in the amount of a 3% salary increase effective July 1, 1988 and a 2% increase of the employer's share of PERS paid for the employee effective January 1, 1989 and to increase the Redevelopment Agency's Budgeted line item of Salaries and Benefits in the amount of $17,349.00. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. (7) RESIGNATION OF JUAN MIGUEL ORTIZ - NORTHWEST PAC Community Development Commission Member Miller made a motion seconded by Flores, to accept the resignation of Juan Miguel Ortiz from the Northwest PAC. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. A discussion ensued. Chairman Wilcox instructed staff to prepare the resolution in the proper format allowing a signature block for the Chair of the Commission. The City Clerk read the title of the resolution. RESOLUTION NO. 5147 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, COMMENDING JUAN MIGUEL ORTIZ. Member Pope-Ludlam made a motion seconded by Member Miller, to waive further reading of the resolution and adopt the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Pope-Ludlam, Minor, Miller. Noes: None. Abstain: None. Absent: Estrada. 4 September 19, 1988 1525R (8) ACCOUNTS RECEIVABLE - RICHARD COLE Community Development Commission A discussion ensued. The Chairman asked what the thinking of the Committee was in making the recommendation of writing off the monies due. She stated that the Commission wrote a letter to Mr. Cole requesting a written report of the business that was conducted in behalf of the Redevelopment Agency and the Commission has not seen that report but rather has seen a statement wherein Mr. Cole is requesting a substantial amount of money to prepare the report in question. Furthermore, she stated that the question is that if he indeed was representing RDA why then is it that the Commission can not have a report. Commissioner Minor stated that he had a problem accepting the recommendation to write off the money in question. He suggested that we take the matter to Small Claims Court. Commissioner Pope-Ludlam said that she was certain that Mr. Cole would welcome that decision. Further discussion ensued. Member Minor made a motion seconded by, Member Maudsley, to prepare the proper documentation and to file a claim with Small Claims Court. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller. Noes: Pope-Ludlam. Abstain: None. Absent: Estrada. (9) FIVE LEVEL PARKING STRUCTURE Community Development Commission Member Flores made a motion seconded by Member Reilly, to authorize the additional expenditure of an amount not to exceed $40,000.00 for the purpose of completing the striping, signage and other related activity for painting project of Five-Level Parking Structure. The motion carried by the following vote: Flores, Maudsley, Minor, Miller, Pope-Ludlam. Absent: Estrada. Ayes: Members Reilly, Noes: None. Abstain: Npne. A discussion ensued. Commissioner Members had some questions as to the cost for a study to determine the feasibility of providing spaces for compact cars and asked staff to provide them with additional general information in the afternoon session for reconsideration. 5 September 19, 1988 1525R Member Reilly made a motion seconded by Member Miller to continue this item to the afternoon. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (10) HOTEL AD HOC COMMITTEE Community Development Commission Member Miller made a motion seconded by Member Minor, that the Hotel Ad Hoc Committee be disbanded. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (11) RUSS HATLE - SECOND AMENDMENT TO OPA Community Development Commission The City Clerk read the titles of the Resolutions. RESOLUTION NO. 5148 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A SECOND AMENDMENT TO PROPERTY OWNER'S PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND LOCUS PARTNERS, LTD., RELATING TO THE STATE COLLEGE PROJECT AREA. Member Pope-Ludlam made a motion seconded by Member Minor, to waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. Member Pope-Ludlam made a motion seconded by Member Mauds1ey, to adopt the resolution. The motion carried by the following vote: Flores, Maudsley, Minor, Miller, Pope-Ludlam. Absent: Estrada. Ayes: Members Reilly, Noes: None. Abstain: Npne. 6 September 19, 1988 1525R (12) LOCAL AGENCY INVESTMENT FUND Community Development Commission RESOLUTION NO. 5149 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING INVESTMENT OF COMMUNITY DEVELOPMENT COMMISSION MONIES IN LOCAL AGENCY INVESTMENT FUNDS. Member Flores made a motion seconded by Member Reilly, to adopt the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller~ Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (13) AGREEMENT (INSURANCE SERVICES) Mayor and Common Council RESOLUTION NO. 88-350 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO RELATING TO INSURANCE COVERAGE. Member Flores made a motion seconded by Member Maudsley, to adopt the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. Community Development Commission RESOLUTION NO. 5150 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO RELATING TO INSURANCE COVERAGE. Member Flores made a motion seconded by Member Mauds1ey, to adopt the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. 7 September 19, 1988 1525R (14) COURT & "E" STREET - CENTRAL CITY PROJECTS Community Development Commission RESOLUTION NO. 5151 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A THIRD AMENDMENT TO PRE-DISPOSITION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND SIMCHOWITZ CORPORATION FOR THE DEVELOPMENT OF A COMMERCIAL STRUCTURE AT THE COURT AND "E" STREET SITE OWNED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. Member Reilly made a motion seconded by Member Maudsley, to adopt the resolution. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (15) YWCA - JOINT PUBLIC HEARING Chairman Wilcox opened the Public Hearing at 11 :55 a.m. and noted that the motion provides for continuance to Monday, October 3, 1988 at 11 :00 a.m. Mayor and Common Council Member Pope-Ludlam made a motion seconded by Member Miller, to continue this item to Monday, October 3, 1988 at 11 :00 a.m. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. Community Development Division Member Pope-Ludlam made a motion seconded by Member Miller, to continue this item to Monday, October 3, 1988 at 11 :00 a.m. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (16) PROGRESSIVE MORTGAGE A discussion ensued. Mr. Harry Jacks and Ms. Darlene Jacks addressed the Commission and gave a summary of the events that took place involving his Beautification Loan which were heard at a prior Commission meeting. He also presented to the Commission additional written summaries. 8 September 19, 1988 1525R Member Minor made a motion seconded by Member Flores, to deny the request from Progressive Mortgage to convert their Beautification Loan into a Beautification Grant and instruct staff to initiate foreclosure proceedings. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor. Noes: Miller, Pope-Ludlam. Abstain: None. Absent: Estrada. The Chairman indicated that the vote was 4-2 and that the Chair had no Veto on the Commission action. MEETING ADJOURNED At 1 :16 p.m. the meeting adjourned to the afternoon. MEETING RECONVENED At 4:15 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 Jack Reilly; Jess Flores; Michael Maudsley, Tom Minor; Valerie Pope-Ludlam, Norine Miller. Absent: Esther Estrada. STAFF PRESENT James E. Robbins, Acting Executive Director; J. Lorraine Velarde, Administrative Services Manager; John Hoeger, Development Division Manager; Barbara Lindseth, Accounting Manager; Dennis Barlow, Senior Assistant City Attorney; Margie Vance, Recording Secretary; Shauna Clark, City Clerk. (17) MILES VICTORIAN HOUSE A discussion ensued. Ken Henderson, Director of Community Development addressed the Commission and gave a brief summary of his findings in this matter. He began by stating that the Community College District has intentions on demolishing the Miles Victorian House, located at 439 8th Street with bids to be open September 26, 1988. The Community College District solicitation is for the sale and removal of the House from its current site, the intent being to have the House restored at another suitable location. The District has already received inquiries from parties interested in the purchas~, moving and rehabilitation of the House. It is expected these parties will respond to the District's advertisement for bids for sale of the property. 9 September 19, 1988 1525R De Anza National Bank is the legal owner of record. De Anza loaned the District money to purchase the site and has an agreement with the District securing the loan. An area of confusion is the perception that swapping land or parking lots with the Community College District would keep the House at its current site and solve related problems. The District has recently spent approximately $150,000 to renovate office space which, when finished, will open directly on the site where the House presently stands. By not being able to use the Miles House site for parking, the District encounters certain problems. Staff has collected certain preliminary cost information relating to alternatives (these alternatives assume City will bear the costs with one exception). This information is set forth below: Number 1: Restore House at present site Estimated cost of rehabilitation: $200,000 Number 2: Move house and restore at alternate site Estimated cost of moving the house: $12,000 to $35,000 Estimated cost of rehabilitation: $250,000 Number 3: Hire structure engineer to determine feasibility of moving house. Estimated cost not to exceed: $5,000 Purchase of Heritage House parking lot: $80,000 Number 4: Demolition of House Estimated cost of demolition: $8,000 Number 5: Eminent Domain Estimated cost: $80,000 Member Maudsley made a motion seconded by Member Reilly, that the Director of Community Development be authorized and directed to proceed with Alternative Number 3 which is to informally solicit bids from professional structural engineers in order to determine the feasibility of moving the Miles Victorian House to another suitable location. Further, that the Director of Community Development be authorized to explore the possibility of the City purchasing Heritage House parking lot from the Economic . Development Council and report back to Council at a later date. The motion carried by the following vote: Ayes: Members Reilly, Maudsley, Minor, Miller, Pope-Ludlam. Noes: Flores. Abstain: None. Absent: Estrada. 10 September 19, 1988 1525R (9) FIVE LEVEL PARKING STRUCTURE A discussion ensued. Hayne Overstreet, Public Buildings addressed the Commission and stated that an additional cost of $100,000 is needed to redesign the restripping of the parking spaces in order to allow parking for more cars by assigning compact cars spaces. This represents a small 5% percent increase in parking spaces. He further stated that there are 1576 spaces at the present time in the parking structure and that 5% will only create 1651, and that we sell each space at a rate of $23.34. There are 326 spaces on the fifth level, and that if we allow for 30% of cars be compact cars we could increase on parking spaces. Community Development Commission Member Miller made a motion seconded by Member Minor, to reconsider the prior motion approved of additional expenditure of an amount not to exceed $40,000.00 for the purpose of completing the striping, signage and other related activity for painting project of Five-Level Parking Structure. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. Further discussion ensued. Member Reilly made a motion seconded by Member Flores, to authorize the additional expenditure of an amount not to exceed $40,000.00 for the purpose of completing the striping, signage and other related activity for painting project of Five-Level Parking Structure. The motion carried by the following vote: Ayes: Members Reilly, Flores, Mauds1ey, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. (18) CLOSED SESSION There was no new information to present the Commission at the afternoon session. Member Reilly made a motion seconded by Member Flores, to adjourn to Monday, October 3, 1988 at 11:00 a.m. The motion carried by the following vote: Ayes: Members Reilly, Flores, Maudsley, Minor, Miller, Pope-Ludlam. Noes: None. Abstain: None. Absent: Estrada. 11 September 19, 1988 1525R ADJOURNMENT Community Development Commission The Community Development Commission/Redevelopment Agency meeting adjourned to Monday. October 3. 1988. at 11:00 a.m.. in the Council Chambers. City Hall. 300 North "D" Street. San Bernardino. California. 12 September 19. 1988 1525R MIHUTES mOWH IEDEVELOPHENT ftOJECT ADA CITIZENS ADVISORY COMMITTEE August 25~ 1988 2:30 P.M. Location: llanageaent InforaatioD Center (Sixth Floor) The meeting of the Citizens Advisory Committee for the Uptown Jledeve10pment Project Area was called to order by Chairman Larry Willson at 2:45 p.m., in the Management Information Center at the City Hall, 300 North -D- Street, San Bernardino, California. COMMITTEE MEMBERS PUSENT OOMMITTEE MEMBEIlS ABSENT (Sub Area -A-) Dr. Robert Krone Scott Scheibe Cas Sermak Larry R. Willson Manuel Acosta Larry W. Ammons* Maria McNulty* Desi Nelson (Sub Area -B-) f Carl Oldenkamp Harry Holmes* Alan Vi vian* STAFF PUSENT Sue Gonzales, Development Analyst - RDA Jill Hammer, Transcribing Secretary - RDA Gary Wagoner, Development Specialist - RDA * Excused Absence Roll Call Roll call was taken by the transcribing secretary. Approval of Minutes of June 16, 1988 FORM MOTION: That the Minutes of the Meeting of June 16, 1988 be approved as submitted. Moved by: Scott Scheibe The motion was carried unanimously. Seconded by: Cas Sermak Ct) Approval of Meeting S~ary of July 21, 1988 FORM MOTION: That ~he Minutes of the Meeting of July 21, 1988 be approved as submitted. Moved by: Scott Scheibe The motion was carried unanimously. Seconded by: Carl Oldenkamp Update - Crosstown Business District Council Ms. Gonzales reported that Redevelopment Agency staff aade a brief presentation this date to the Crosstown Business District Council. Ms. Gonzales stated that discussion centered on the basic principles/benefits of a redevelopment project area. Consolidated Parking ProjectOOni Main Street - Horth Side of Highland Avenue The draft letter to the property owners on the north side of Highland Avenue between Arrowhead and E Streets was reviewed by the Committee. Mr. Semak suggested that we try to schedule the meeting at the American National Bank building on Highland Avenue sometime in October. ( Committee members concurred that the letter shoUld be sent to the business owner as well as the property owner. MOTION: That the salutation of the letter be amended to read: Property/Business Owner. Dear Moved by: Scott Scheibe The motion was carried unanimously. Seconded by: Cas Sermak MOTION: To approve the body of the letter as written with the actual date of the meeting to be decided at some mutually agreeable future date. Moved by: Cas Sermak The motion was carried unanimously. Seconded by: Carl Oldenkamp Mr. Willson called the Committee's attention to The Sun article entitled "For 60-Year-Old Bakery, Success is a Piece of Cake." Mr. Willson suggested inviting the manager of Noyes Bakery to the meeting of the property/business owners mentioned above. He could, by experience, share the benefits of having quality parking available behind his business. -2- Vacant Land Survey , \ This item was contin,ued until the next meeting scheduled for September 15, 1988. UptOWD. CAC Letterhead Mr. Willson reviewed Sample I and Sample II which reflect the suggestions made by Committee members. Discussion centered on "the arrowhead" being more of a central focal point of the logo for the Committee. Several Committee members questioned whether the association between the Committee and the Redevelopment Agency should be indicated sOllehow on the letterhead. Mr. Wagoner suggested that the following wording be used: Uptown Citizens Advisory Committee to the Redevelopment Agency, City of San Bernardino. Committee members suggested revising the logo by deleting the "U" altogether and by superimposing the palm tree on the arrowhead design. Committee members discussed the proposed revisions with Terry Adams, graphic artist for the RDA. MOTION: To accept the letterhead as designed With the revisions discussed above. ( Moved by: Dr. Robert Krone The motion was carried unanimously. Seconded by: Cas Sermak The Committee agreed that once the design is completed the first order for the Committee could be executed. General Plan Aaendllent Mr. Willson reviewed the Interim Plan Document with its accompanying Preferred Land Use Alternative Map with the Committee. Mr. Wagoner explained that the State of California granted the City of San Bernardino a one year extension until June, 1989, to complete and adopt a General Plan. This interim document will allow the City to make land use decisions until the final General Plan is adopted. Mr. Willson asked if further changes would be made to the Interim Plan Document during this year. Mr. Wagoner answered affirmatively. Mr. Wagoner requested that the Committee review Attachment C which shows the new land use designation abbreviations. -3- Mr. Scheibe asked how one could aaking a zoning recOlllDlendation. Mr. Wagoner advised Mr. Scheibe that there is a General Plan Citizens Advisory Committee (CAC) which aeets regularly and welcomes suggestions. Mr. Scheibe asked why there is not adequate land dedicated to eo..ercial - Heavy. He noted that this proposed Plan has zoned out all used car dealers and car service facilities. Mr. Wagoner recommended that Mr. Scheibe express his concerns to the aembership of the General Plan CAC as well as to his Planning Commissioner and/or City Council person. Mr. Scheibe requested that the Uptown CAC represent his concern in further discussions on this subject with those organizations and/or committees involved with the final decision aaking process for the General Plan. Mr. Willson requested that Mr. Scheibe be placed on the mailing list for the General Plan CAC meetings. Mr. Wagoner referred Mr. Scheibe to Vince Bautista from the City Planning Department for further information. Several Committee members requested that this item be continued to the next meeting to allow for more discussion on the General Plan. Proper Ilelationahip of PACe/CACs to the ec..un1ty De'Ye1opaent eo-1ssion & City Council ( Mr. Willson reviewed the Commission/Council agenda item on the. proper relationship of the PACs/CACs to the Community Development Commission and the City Council. It vas noted that the item was continued until September 6, 1988, so that notices could be sent to all CAC and PAC members giving anyone who desired an opportunity to speak on the subject at the meeting. Mr. Willson summarized the materials submitted stating that more effort would be made by Agency/Planning Department staff to assure that each CAC/PAC is kept adequately informed as to development proposed within its project area. Cf. Pg. 1 Interoffice Memorandum, Paragraph 3, Line 14, Dr. Krone asked what the referenced $60,000 would cover. Mr. Wagoner commented that those funds would be used to cover the cost of Planning Department personnel working directly with the CAC and/or PAC on a proposed project. Dr. Krone expressed support for the policy to keep the Uptown CAC advised of new, proposed development before final Planning Commission/Council approval is obtained. Conditional Use Permit No. 88A-2 Mr. Willson requested that the Committee be provided with a copy of the proposed lot layout for this motel. It was noted that this item is scheduled to be reheard by the Planning Commission on the evening of September, 6, 1988. -4- Mr. Wagoner reported that several attendees of the Crosstown Business District Council aeeting verbally stated their dispproval of the new .otel (cup 188A-2) being planned on Highland Avenue. Mr. Wagoner stated that he suggested th&t their protest efforts be coordinated through Cas Sermak. MOTION: That Cas Semak represent the Uptown CAC at the Planning Commission aeeting on September 6, 1988 and express the Committee's negative feelings about such a project coaing into the area. Moved by: Carl Oldenkamp The motion was carried unanimously. Seconded by: Scott Scheibe Cf. Planning Commission Agenda Item, Observations, Page 3, Police R.eport section, Dr. Krone questioned the fact that the proposed site is located in a very low crime area. Several Committee .embers requested further information on this fact. Mr. Wagoner stated that current crime data is available through the Police Department. Mr. Willson asked if the area statistics reveal a need for a .otel use. Mr. Wagoner did not have that information available. He stated that, in .ost cases, the fact that an area might be overbuilt for a particular use does not justify denial of that use for a particular developer. r- Renoaination of Uptown CAC M_bers Whose 'leras Have Expired FORM MOTION: That Larry Willson, Dr./Mrs. R.obert Krone and Larry Ammons be renominated to represent Sub Area A on the Uptown CAC. Moved by: Carl Oldenkap The motion was carried unanimously. Seconded by: Cas Sermak Update on Old Mode-O-Day Plant Ms. Gonzales reported that no information was available on this project from the Planning Department. Main Street Intersection Materials Ms. Hammer reported that the engineering specifications will dictate the materials used in the intersections involved in the Main Street Program. Ms. Harris, Main Street Project Manager, is recommending a combination of cement and brick pavers to be used for this purpose. -5- Update 011 Baseline Traffic Bystea Ms. Gonzales reported that a aeaorandum has been sent to Mr. llafat Ilaie. Assistant Traffic Engineer. A response should be forthcoa1ng by the time of the next aeeting. Long llaDge Plam11ng - City of San Bernardino The Committee reviewed Dr. Krone's letter dated August 8. 1988. Ref: San Bernardino 2010. Ms. Gonzales reported that a copy of the letter had been forwarded to Councilwoman Esther Estrada who is vitally interested in long range planning for the city of San Bernardino. There being no further business. the aeeting of August 25. 1988. was adjourned at 4:20 p.m. Respectfully submitted. ff:!-:. In. ~ Jill M. Hammer Transcribing Secretary jmh:3267K ~ -6- R~VELOPMENT AGENCY ."~EST FOR CvMMISSION/COUNCIL Ac-..oN Date: September 9, 1988 MOVE TO RECEIVE AND FILE THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGING OF NOTES RECEIVABLE REPORT FOR THE MONTH OF AUGUST 1988. From: James Robbi ns, Acti ng Executi ve Di rect~bject: Ut:pt: Redevelopment Agency Synopsis of Previous Commission/Council action: September 22, 1988-The Redevelopment Committee received and filed the Redevelopment Agency of the City of San Bernardino Aging of Notes Receivable Report for the month of August 1988 and recommended that this repor be presented to the Community Development Commission to be received and filed. Recommended motion: COMMUNITY DEVELOPMENT COMMISSION . Move to receive and file the Redevelopment Agency of the City of San Bernardino Aging of Notes Receivable Report for the month of August 1988. I~ ~ Signature Contact person: James Robbins, Acting Executive Director Supporting data attached: Phone: 383-5081 Ward: Yes FUNDING REQUIREMENTS: Amount: $ Project: N/A All No adverse I mpact on City: Date: October 3, 1988 r 'cil Notes: Agenda Item No. '7 .""'l ~~ // REDEVELOPMENT AGENCY -REQUEST FOR CO..,ISSION/COUNCIL ACTION S.TAFF REPORT The Redevelopment Committee requested that the Redevelopment Agency's Aging of Notes Receivable be presented to the Committee on a monthly basis as an information item only. On January 22. 1987. at the Redevelopment Committee meeting. the Redevelopment Agency's Aging of Notes Receivable was presented for ,the first time to the Committee for the month of December 1986. At this meeting. the Redevelopment Committee recommended that the Redevelopment Agency's Aging of Notes Receivable be presented to the Community Development Commission each month as an information only item. 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OOOOOOON ~ ..... lXl ~ o W lXlW lXl 0'1 ..... 0'1 ~..... ..... lXl ~ o W lXl lXl ..... .... o c: ..... III ..... ~ ::> ~ ::> ~ <C ~ W N N o 0 W ~ 0'1 ..... o ~ ~ o ~ N 0'1 ~W lXl 0'1 WO'I ~..... ~.... ~ W ~~.....~..... 0 OOlXl~N""'~"'" .. .. .. .. .. .. .. .. OO<C~""lXlW~1 OOOlXlWlXl.....~O OOlXlOO~~....1 OOAC-O\NO OO~O~lXlO'llXl CD 00 0..... ~ - ::> ..... ~ "'I ~ III ..... III ..... .... .... W~ ~ W~ ..... ~W 0'1 ON 0 ~O'I ~ 0.... ~ 00 lXl ~ ~ ..... o ~~ ~ ~ ~ i~' ~-og ::c -l -V> Z-l n)> _z -00 )>- ,..-z Cl )> Cl )>- IIlZ Cl o ~o ~ )> c:Z ceo C:-l Ill'" ..... V> W::C .... I'T1 v n ", ....- ~< lXl)> lXllXl ,..- I'T1 ::c I'T1 o I'T1 < I'T1 ,..- o -0 :x I'T1 z -l )> Cl I'T1 Z n -< o ~ -l :I: I'T1 n - -l -< o ~ V> )> Z lXl I'T1 ::c z )> ^' o - z o REDEVELOPMENT AGt~CY - REQUEST FOR LOMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: SAN BERNARDINO REDEVELOPMENT AGENCY - AUGUST QUARTERLY UPDATE DATE: SEPTEMBER 23, 1988 Synopsis of Previous Commission/Council/Committee Action: NONE (Community Development Commission) Recommended Motion: Move to Receive and File the San Bernardino Redevelopment Agency August Quarterly Update. ~~~ i ature FUNDING REQUIREMENTS: Amount: $ Phone: 384-5081 Ward: ALL Project: ALL Date: OCTOBER 3, 1988 Contact Person: James E. Robbins Supporting data attached: YES No adverse impact on City: Council Notes: Agenda Item No. v' ~ SBRDA UPDATE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUGUST, 1988 VOL. 16 Rockwell International Locates in San Bernardino This full-scale mockup of the command, control and communications equipment for the U.S. Air Force Peacekeeper Rail Garrison Launch Control Car was developed by Rockwell International Corporation. CITY HALL. 300 NORTH "'0'" STREET. RM. 320 . SAN BERNARDINO, CALIFORNIA 92418 . PHONE: (714) 384.5081 JAMES E. ROBBINS. ACTING EXECUTIVE DIRECTOR Cover Story ROCKWELL INTERNATIONAL COMES TO SAN BERNARDINO LCS CENTER Wl.EIlIl ---- PnflIIlIIrFence PlopenyUne ~ 9lcIf1IglIBuilding OPTIONAL SPUR / Rockwell International Corporation recently won a $163 million defense contract to produce the Peacekeeper Rail Garrison Launch Control System. The work will be done by the company's Autonetics ICBM Systems Division in a new Launch Control Sys tern Center to be 1 oca ted in San Bernard i no. Th ish i gh-tech comp 1 e x for the design and production of vital components of the U.S. Air Force Peacekeeper Missile program will be developed at a 9.9 acre facility located near the intersection of Tippecanoe and Cooley Avenues. The new facility contains two buildings with a combined 133,000 square feet, and added area for the heavy assembly operations the program will require. One of the buildings, with 77,000 square feet, will be equipped for an engineering and manufacturing support center and administrative area. The other, which has 56,000 square feet, will be for light manufacturing, electronics integration and a test center. Rockwe 11 pl ans to occupy the new fac i 1 ity in September. The city 's Redeve 1 opment Agency wi 11 he 1 p place San Bernard i no area re s i dent sin jobs at the site through an employment linkage program with the San Bernardino Employment and Training Agency. The Launch Control System Center employment will reach a peak of 500 to 700 people in the 1990-91 time period. Total financial impact of the facility--including payroll, capital expenses, contracted support, supplies, facilities, employee benefits and materia1s--is estimated at more than $150 million over its first five years. After that time, local expenditures are projected at some $30 million yearly. 1 Feature Article KIDS "R" US OPENS The Sorrento Group recently announced the grand openi ng of a Ki ds "R" Us di scount chi1drens clothing store in the almost completed retail complex across from the Orange Show Grounds at 620-650 South "E II Street. The 21,500 square feet store features a large variety of childrens clothing and is operated by the same company that operates the highly successful Toys "R" Us toy stores. Construction recently started on an E1 Pollo Loco whi ch is schedul ed to open by October 1,1988. An Arby's fast food restaurant will soon be under construction and is planning to open by November 1, 1988. These two operations will occupy approximately 4,600 square feet. There is approximately 11,000 square feet remaining to be leased in the complex. The total appraised value of the entire center upon completion is estimated to be over $5,500,000. Michael Reeves and Alan Gott1eib, principals of the Sorrento Group, see a great deal of opportunity in the city of San Bernardino and are actively seeking other locations in Redevelopment Project areas. Redevelopment Agency staff is working closely with the Sorrento Group to identify suitable sites and to assist in the redevelopment of older, blighted areas. 2 Feature Article WEST HIGHLAND CENTER The West Highland Center located at 1455 West Highland was completed in December 1985 to the cheers and approval of the west side community. The center which has 20,000 square feet can accommodate up to 20 businesses and is 80 percent 1 eased. Accordi ng to Bob Di cks i on, property manager of the center, negotiations are currently underway to lease the remaining space. Businesses currently in the center are: Your Market, Fatburgers, K & K Donuts, Check Cashiers, Os teem Carpets, Valley View Mortgage, McKinn1eg Enterprise, Evans & Nettles Bible and Gift Supply, Thai Sing Market, Pacific Rim Real Estate and Garment District Active Wear. Because the center is located within the commercially designated area of the Enterprise Zone, the developer was able to save several thousand dollars in planning, engineering and building permit fees. And as an incentive to businesses that locate in the center, they are exempt for the same fees as well as the business license fee. Total savings to each business can add up to severa,l hundred dollars. The Agency is current 1 y working wi th Gene Sword owner of the center on upgrad i ng lighting and signs. 3 Tri-City 5th , ~ ., ~-'I r--r"- / r- r <' .- 1 ~_.1 I J Carneqie Plaza Carnegie Plaza, Phase II is a 70.000 square foot garden office complex scheduled to be completed in August. 1988. Tri-City Corporate Center's Lake Work is progressing on the man-made lake which should be completed in December. 1988. 4 ,.,,4 Six Story Office Structure A 120,000 square foot, six story office building is now in the framing stage, with completion expected in December, 1988. La Petite Academy Frami ng has begun on La Peti te Academy. a 6,600 square foot day care center located on Hospitality Lane. This fully licensed facility expects to be open in September, 1988. 5 Sport Mart Construction of Sport Mart, a 40,000 square foot sporting goods facility is under way adjacent to Pace Warehouse. Also under construction is a 6,700 square foot retail shop which will be available to lease in the near future. ~ ~--, r-I..,J L-L1 South Valle ,..., Street c ...._....~-) ~ r- Oi r .. <' 3: ,J J I r----' I r-J ( J Vista Paints Vista Paints, located at 475 Red1ands Blvd., is a 28,000 square foot building which opened in May, 1988. Fronting on 1-10, the two story facility provides 6 paint, wallpaper: blinds, and related supplies to both contractors and the retail purchaser. PETCO (left) and BOOT BARN (right) SUN VALLEY WATERBEDS Various Retail A 14,290 square foot retail complex was recently completed at the corner of Red1ands Blvd. and Hunts Lane. Tenants in this new facility are Petco Pet Store, The Boot Barn, a western wear shop, and Sun Valley Waterbeds. 7 State College Highland I I ~,J Baseline ~ ~ '" ..... J & V Foam Products J & V Foam Products has constructed a 34,000 square foot, two building facility which is near completion. The buildings have been fully landscaped, and the interior of the buildings are now being finished. Food Mart A gas station/mini mart is now under construction at the corner of University Drive and Hallmark Parkway in the State College Project Area. The mini mart has been completed, and installation of tanks and gas pumps is under way at this time. 8 Northwest Westside Shopping Center An 80,000 square foot shopping center is projected for the corner of Baseline and Medical Center Drive. Included will be a chain supermarket, drug store, financial institution and various retail stores. The financing for the Westside Shopping Center includes conventional financing of $4,861,000. This is to be accomplished through the use of interim float loans from the county, the city and the agency. The se inter i m loan s are to be rep 1 aced with a private permanent loan at the end of three years. The float loans wi 11 be backed by AA rated bank letters of credit whi ch wi 11 be i rrevocab 1 e, ca 11 ab 1 e on demand (even before three years), and are direct pay obl igations of the guaranty bank. Because the float loans are backed by the developer's letter of credit the risk is on the private side of the partnership. During the three years, however, the source of funds is from the public side. The county held a public hearing on July 25 for their CDBG plan amendment. The city has set a hearing for August 1. The third component is a loan from RDA for $861,000. San Bernardino Steel Construction has been completed on a 5,000 square foot administrative office facility in front of San Bernardino Steel's existing plant. The offices will be occupied in the near future upon completion of the interior of the building. In addition, San Bernardino Steel is erecting another manufacturing facility similar in size to their existing plant. At this time, the siding and roof are near completion on the 90,000 square foot addition. 9 San Bernardino Community Hospital Work continues on the additional wing of the San Bernardino Community Hospital. On-site improvements are under way, and construction is estimated to be completed by December, 1988. Also planned is an $8-10 million dollar medical/professional building which will be located across the street from the present hospital. This facility should be completed by September, 1989. Southeast Industrial Park c: o c: Q; > 5th Street r rl ~ ,"'-I-LS-J LJ r- i ~ r - ...r..... E -'L-., rl Q; L.; (ij ~ Street MILES & HALL PARTNERSHIP 10 Miles & Hall Partnership In addition to the Rockwell site. Miles & Hall has leased a third building at the Cooley Court site to two parties: Kevco, Inc., a plumbing supplier. and Laurent Creations. who is relocating from Van Nuys and expects to employ approximately 50 people. Victoria Industrial Park Construction has begun on ten free standing industrial buildings located on the Northwest corner of Richardson Avenue and Victoria Avenue. The buildings range in size from 6.000 to 16.000 square feet. The project is being developed by Pacific Scene. Inc.. and at this time, two of the ten buildings have tilt-up walls in place. 11 Sunset Development Sunset Development has recently completed the construction of Building #8 of their development agreement in the Southeast Industrial Park. The 4-story office building is 106,000 square feet, with an estimated value of $4,920,000. Construction activity adjacent to the 4-story building will be a 19,257 square foot commerc i a 1 retail center wh i ch wi 11 have an improvement va 1 ue of approximately $695,178. Development is in framing stages. 12 " J ... Royal Chrysler/Plymouth Royal Chrysler/Plymouth has moved from their "E" Street location and is now open for business in the San Bernardino Auto Plaza. Development consists of 8,752 square feet housing an office/showroom area, service center and parts department. Total value of development is estimated at $295,242. Suzuki Dealership The Suzuki Dealership adjoining Royal Chrysler/Plymouth is currently under construction. Once this development is complete, the showroom and sales office will consist of 4,270 square foot, valued at $219,905. 13 Roger Harmon Motors The San Bernardi no Auto P1 aza is the new home for Roger Harmon Motors. The new faci 1 i ty is 47,839 square feet of showcase, body shop and servi ce areas. The estimated value of development is $1,756,194. "E" Street Design Center Development at 1730 South "E" Street will be 21,000 square feet of retail buildings. The Design Center will focus on furniture-type sales. Estimated value is $764,400. Tri Cities Investco Commercial buildings at 1999 Diners Court are nearing completion. Value of improvements are estimated at $498,180. 14 Central City South ~ 1L.r-, .., Street g ...-_J"-?-) E r- Q; r to .; ~..r ( ,_J Sima One Development Sima One Development located on the northeast corner of Mi 11 and "G" Streets is the newest development in the CCS Overlay Zone. This 30,500 square feet of retail space, plus 60,856 square feet of industrial space, is complete. Total estimated value of improvements is $3 million. "G" Street has been rea 1 i gned and a traffi c signa 1 at Mi 11 and "G" Street is be i ng planned. This will allow easier and direct commuting between the Central City Mall and Inland Center Mall. 15 MILL & G STREET INTERSECTION RETAIL COMPLEX Kids "R" Us The Sorrento Group is constructi ng a retail comp1 ex at 620-650 South "E" Street. The major tenant will be Kids "R" Us, a 21,500 square foot clothing store for children, valued at $726,831. The grand opening was July 31. Other Projects Other activity within the Kids "R" Us complex will house a 2,400 square foot E1 Po11o Loco and 2,200 square foot Arby's fast food establishments which project to be open by October 1st. An additional 11,000 square foot commercial space will also be avai1.able for lease within the development. Total value upon completion would be nearly $1,138,000. 16 Uptown ~ t, J Baseline ....J~,r L,; E1 Po11o Loco The Uptown Project is awaiting completion of a fast-food establishment for E1 Po1lo Loco. This activity is at 758 ~est Highland Avenue. The roof has just been completed and the parking lot has been graded. The restaurant will consist of 2,268 square feet valued at $192,780. 17 Meadowbrook-Central City Baseline .-- r' r l... --, r -' L'rl L.; ILr.., f"1 Street r--~?-) Woolworth The County Child Adoption Services Department is eagerly waiting renovation of the Woolworth Building on "E" Street. They anticipate completion of the interior/exterior rehab work by August, 1988. The developer is working to compliment the new modern facade of the building with the downtown Main Street heritage theme by keeping as much of the original tiles and structured art work on the building as possible. Court and "E" Street Si mchowitz Corporati on has entered into a 190 day pre-d i spos iti on agreement with the Redevelopment Agency to explore the concept for a multi-story retail/office complex at the southeast corner of Court and "E" Streets. The agreement has been amended to extend negotiations for working the detail of the proposed development to September 1, 1988. Main Street Office Ann Harris, Main Street Project Manager, is now operating out of the Quinton Building, 498 W. Court Street on the 2nd floor. Telephone number is (714) 381-5037. 18 Central City North Baseline c 0 c Q; 5th > ~ fL., n --, r --' L..1 rl L..; Street ~-'I ~_r- ./ Sun Te1eqram Expansion The Sun Telegram is adding 32,000 square feet to its existing facility which will provide additional space for new printing presses. Upon completion, this facility will be valued at approximately $15 million. Gold' Gym Gold's Gym, the fitness center for men and women at 480 West Court Street has been recently renovated. The $200,000 improvements include new and additional equipment as well as an expanded exercise area. 19 M.S. Partnership A 5,242 square foot retai I center, valued at $250,267 is under construction on the southwest corner of 5th and "0" Streets. The development is nearing completion. <:-~'. Lewis Partners A 7,200 square foot office and retail complex is under construction at Fourth and "H" Streets. The roof has been completed and the building is awaiting stucco treatment. 20 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA CITY HALL 300 NORTH wD" STREET SAN BERNARDINO, CALIFORNIA 92418 REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins. Acting Executive Director SUBJECT: NH - ASSESSMENT DISTRICT DATE: SEPTEMBER 23. 1988 Synopsis of Previous Commission/Council/Committee Action: 06/20/88 Motion approving expenditure of $15.000 to prepare a preliminary assessment roll for the NH Assessment District. 9/22/88 Committee recommended Commission receive and file attached report. (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to receive and file information item. S19~ ~ Contact Person: John Hoeger Supporting data attached: Yes Phone: 384-5081 6th Ward: FUNDING REQUIREMENTS: N/A Project: NW Date: OCTOBER 3. 1988 Council Notes: 4412G:JER:JH:sm ------ Agenda Item No. ~ S T A F F R E P 0 R T Property owners in the NW Industrial Park have now deposited the funds needed to proceed with the engineering and formation of the proposed assessment district. BACKGROUND For some months now there has been talk of forming an assessment district to fund the installation of certain public improvements in the Northwest Industrial Park. The land in question is bounded by 1-215, Palm Avenue, Cajon Boulevard and Devil 's Canyon Diversion Channel (see attached map), and represents approximately 250 acres. Initially, Carl Waelder (a realtor representing a large percentage of the subject acreage) wanted to widen and resurface Industrial Parkway, and install curbs, gutters and street lights. Most of the property owners were in favor of this. One approach was to create an assessment district at an approximate total cost of $1,200,000. Another approach was for the property owners to pay the improvement costs upfront, in which case the total would have been approximately $700,000. Incidentally, these cost figures were supplied by Carl Waelder, and it is not known how accurate or how up to date they are. The Redevelopment Agency wanted an expanded scope of improvements. These would include two bridges, one over Cable Creek Channel anp another over Devil 's Canyon Diversion Channel. This would help to connect Industrial Parkway with Hallmark Parkway in the State College Business Park, greatly improving the traffic circulation through the two industrial sectors. In addition to the bridges, staff felt that landscaping, sewer and undergrounded utility lines should be installed simultaneously with the other improvements to Industrial Parkway. Assessment district costs for the bridges and expanded roadway improvements have been estimated at $1,828,984 and $2,550,029 respectively, for a total of $4,379,013. As might be expected, the property owners have expressed serious concern about the greatly increased cost of the expanded district. On March 9, 1988 a meeting of the affected property owners was arranged and the Redevelopment Agency's proposal to include the bridges. landscaping, sewer and utility lines was presented. Anticipating the resistance of the property owners to the increased costs of the assessment district, staff proposed that the Redevelopment Agency would bear the cost of the bridges and one-half of the sewer and utility lines, if the property owners would pick up the balance of the additional improvement costs. Also, the assessment district initiation fee of $59,000 was to be split 50/50. The property owners were essentially amenable to this plan. Subsequent to this meeting, staff finalized fiscal agreement negotiations with the County of San Bernardino, covering the Northwest Project Area. The tax increment we will receive, 46 percent of the total increment, is not as much as we had hoped for. Moreover, it is insufficient, considering our other obligations in Northwest, to cover the debt service on bonds necessary to pay for the bridges and our share of the sewer, utilities and district initiation fees. For anyone interested in a more detailed discussion of the impact of the fiscal agreement on the Northwest Project Area, attached is a copy of a memorandum from Glenda Saul to the Commission explaining this situation. Another meeting with the property owners was arranged on June 14, 1988. Staff explained the fiscal agreement difficulties we had had with the County, and that because of the diminished available tax increment, we would not be able to pay for the bridges and our share of the other improvements after all. At best, we could only obligate to a portion of the original amount we felt we could cover. We did, however, present a new scheme (see attached copy of meeting agenda) whereby tax increment could be increased if property owners would accelerate development of their parcels. Under this plan the expanded assessment district would be implemented, with the property owners bearing most of the cost. If they would enter into development agreements and accelerate the bui1dout of their land, however, the Redevelopment Agency would rebate up to five years of their assessments from tax increment generated by the new development. The property owners generally agreed to this concept, but requested specific information on how the cost of the district would be spread over the various parcels within it. On June 20, 1988 the Community Development Commission approved the expenditure of $15,000 to prepare a preliminary assessment roll, which would arrive at a per parcel cost of instituting the expanded assessment district. Wi11dan Associates prepared this roll for presentation at the next property owners meeting. This meeting was held on August la, 1988. The cost-spreading method and the specific assessments applied to each parcel were explained to the property owners. Though still receptive to the expanded assessment district, most owners present at the meeting felt that the cost of the bridges outweighed any real benefit they would derive from them. Two new alternatives for financing the bridges were introduced. First, Carl Wae1der feels that property owners in the State College Business Park should share in the cost of the bridges, since they also will benefit from them. Secondly, Dave Hawley reminded us that there is a 26-year old County resolution (copy attached) obligating Flood Control to pay for the bridges. He agreed to follow up with the County about this possibility. Regarding the sewer and utility lines, Carl Waelder was outspoken in recommending that we wait until such time as sewer is extended from State Street up to Devil 's Canyon Diversion Channel. At that time sewer and utility lines could be installed alongside Industrial Parkway, thereby obviating the need to tear up new road improvements. 4412G:JER:JW:sm 3 On September 14, 1988, staff met with Willdan Associates to discuss several alternatives. Shortly after this, Carl Waelder deposited the $59,000 initiation fee with the City for the original concept (street widening, curbs, gutters and streetlights), so it appears that the expanded district proposed by the Redevelopment Agency will not go forward. 44l2G:JER:JW:sm 4 ..z. c- I : I 1 .'1 . I I ~ I. 'LI..,.a, ..... II "0" J I I -~.. --- J.i MEMORANDUM ('- . fiLE "OF; ~. J No. 118 "'n. '.84 REDEVELOPMENT AGENCY OF DIE CITY OF SAN BERNARDINO, CALIFORNIA DATE June 17. 1988 * TO COMMUNITY DEVELOPMENT COMMISSION ~:tJ..A .1 FROM Glenda Saul. Executive Director JUBJECT NORTHWEST TAXING AGREEMENT/HAAGEN DEVELOPMENT On June 20. 1988. in Closed Session we will be discussing the following: Northwest Taxing Agreement Projections for growth within the IndustriAl Area a. b. c. r~ d. " . Baseline and Medical Center Drive ~hopplng Center Future negotiations based on available Tax Increment Below Is a summary of these Issues: a. Northwest Taxlna Aareement - Current neaotlatlons 201 - Low Moderate Housing Fund 151 - County to reta1n 41 - Flood Control to retain 151 - Regional Improvement Fund to accrue interest at 61 - CAP . $2.500.000 461 - Agency share 1001 TOTAL * * Regional Improvement Fund (RIF) to be used to pay for the lining of cable creeK. The County would l1Ke a comm1tment wlth1n the agreement that the lining of cable creeK w1l1 taKe place with1n 5 to 7 years. Our 1989 estimate for the 11nlng of cable creeK Is $4.305.000. The 151 Regional Improvement Fund has a CAP of $2.500.000. Lining of this channel would cost the Agency $1.800.000 over and above County part1c1pation. Conversations with Gene Klatt. Assistant Eng1neer. confirms that the lin1ng of this channel 1s not necessary today for development w1th1n th1s area. 1 -(!};;~ A~ Sm ~/;)C/i:i . ~ (2 ?) e - j):J~f1? ee- ;( S - 4 ~ tarL .~ /:' - ~ L' !'It?! -(ljI ~. .s -:) _' Q ~ ..' j \, Agency staff reco.mends negottat~ons that wtll provtde that the RIF be .set asIde earnIng Interest to be used before the exptratton of the Redevelopment Project Area Plan toward the cost of llntng cable creek. If for some reason the channel ts not ltned wtthtn thts pertod of ttme the $2.500.000 and accrued Interest would be returned to the County. b. Projecttons of Growth - RIF - Increment Projecttons ltntng of ~s c ,nel ~y become a jquir~~nt of the devel~nt 15 to 20 years from now. Currently development can occur adjacent to an unltned channel as long as a 100 foot set back ts provtded. Thts set back '~y be used for parktng. TABLE I - C'" Attached please ftnd Tax Increment projecttons for the Northwest Project Area. Table I assumes no further growth tn the prOject area. Please notice that wIth the 21 yearly Increase in value allowed by law. the RIF wtll reach Its CAP by year 2015/16. Total prtnclpal and tnterest accumulated over thts pertod of time In the RIF will equal $4.003.000. Please also notice that the total tax tncr...nt avatlable today frOll the Northwest PrOject Ar.a Is $202.215 before ,aYlltnt on our notes outstandtng for the acqulsttton of the property at Baseltne and Hedlcal Center Drtve. Thts tncr...nt. tncr.ased by the projected develop.ent of Bas.ltne and Medlcll Center Drive and Communtty HospItal offIce bulldtng, wt11 be adequate o to servtce notes for the Agency's'parttctpatton in the BaseHne and Nedtcal Center Drtve ShoppIng Center, If the Counctl/CoIIntsston chooses to go forward wIth this development. TABLE II - Assumes the following new developments wlthtn the Project Area: Year 89/90 - $10,000,000 Baseltne and Medtcal Center Drtve Shopptng Center Year 90/91 - $8,000,000 Communtty Hospttal Offtce Butldtng Year 93/94 - $10,000,000 per year through 2017/18 _ 51 butldout per year of tndustrtal area. Ustng these assumpttons the RIF wtll reach tts CAP by year 2005/06. Total prtnctpal and tnterest accumulated tn this fund by 2005/06 will be $3,007,000. Using these assumptions the. avatlable tax tncrement for the Northwest Project Area will provtde for the servtce of the Baseline and Medical Center Drtve Shopping Center Note and negottated agreements with the property owners tn the Industrtal Area (based upon the new increment to be received due to new tndustrial development). It must be understood that the Agency's reductton tn tax tncremental assistance from 801 of total value to 461 reduces Its negottatton capactty accordingly. 2 ~ ( ( It also .ust oe recognized that if no development Occurs. and the CoMmission chooses to go forward with Its Note Issue for the Shopping Center. the Agency will not have any additional Increment over that needed to service the Notes. This In effect ..ans that each transaction will need to stand on Its own ..rlts for assistance. based upon need and its Incr.-ent generating projections. little funds will be available for Linkage and Beautification Programs. because these programs do not generate new tncrement. . c. Baseline and Medical Center Drive Shopping Center i. CDBG County Float Mr. Scott Rodde. National Development Council ..t on May 31. 1988. with Ray Resendez and Duane Burgess of County Community Development. Mr. Rodde Conveyed that at the concluston of this ..eting he felt that staff was comfortable In reco.mending approval of the County CDBG Float loan to this project. Attached as Table III. Is a summary of the ftnanctng of the prOject Including the CDBG Float for your review. il. UDAG Extension ('\ In accordance with our UDAG Agreement. as amended. all evldentaries are required to ~e received by HUD by July 11. 1988. Due to the extended time required to negotiate the construction/permanent financing for this transaction. an extension of time will be required. Staff 15 recommending a 9 month extension. If the Commission/City Council desires continuation of this project. the following Items .ust be addressed: , · Staff to prepare letter to UDAG requesttng 9 ~nth extension of agreement. · County partic1pation finalized - contingent upon extension. · BondS/Notes <$2.000.000> sold - If extension approved. · Development Agreements finalized to Include float concept of financing. If a 9 month extension Is granted construction of the shopping center should start In March of 1989 and be completed in March of 1990. 3 ( (, I have discussed the extenston of our UDAG Agree..nt with Scott Rodde, Nattona 1 Development Council. n Scott belteves .IJ)AG will be. agre.able to this extenston as long as the ~'ncy can ellld,nced continued sttppOrt of the Shopptng >c..nter. ... ~e IOIng to attellptto "Klude wtthlft our ;0 request for an extension a Jetter 'ro. CouIt.J~taff ~upporttng the concept of float ftn.nc'ng nntltgral co.ponent>. . ,.Att.ched as T.ble IV is a r.vised t.nt.ttv....ctton schedule to be 'ncluded wlthtn our request for an extension. d. future NeQotlatlons tn Northwest based on available tax tncrement C' Table V ts a copy of an agenda which was presented to those property owners tn the Northwest Industrial Park East of Cajon Boulevard. The Agenda tncludes proposed negotiations to encourage a full Assesslent Distrtct and early development. It would be our recommendation to negotiate Participation Agreements with willing property owners to encourage the Assessment Dlstrtct to Include the two brtdges and full tmprovements to Industrial Park Nay for projected Assessment District Bond of $3,800,000 and retmbursement to the property owners of: 5 years of Tax Increment Ass istance (461 of the Tax Increment> not to exceed the parttelpants total .partlctpation . tn the Assessment District. It was the concensus , of those property owners present that the proposal would favorably encourage early development. In order that the assessment roll could be produced. Public Works would need a commitment from the property owners or the Agency that. If the District ts not approved. the costs to the City will be paid. The property owners requested that the Agency provide this assurance. The outside expos~re figure Is . $60.000. The .ngineer will have .dequate data to ..ke a deter.inatlon whether or not to go forward. after $10.000 _ $15.000 ts expended. Two property owners will be submitting letters by Monday setting forth their tntent to construct and development schedule. Staff and Councilwoman Pope-Ludlamd are recommending an Agency commitment of up to $15.000 to have the Assessment Engineer provide the role. At that pOint we would review the Nspread of benefit/cost.. with the property owners to determine if we should go forward. Councilwoman Pope-Ludlam has asked that the motion to consider this partiCipation be made In open session. A motion is on the supplemental Agenda following your review in closed session. -- It should be noted however. that If the Commisston determines not to go forward with the Baseline and Medical Center Drive Project. the tncremental revenue from the Project Area today will serve bonds tn the approximate amount of $2,000.000 which could be used by the Agency for a portion of the Public lmprovement required.o 4 (. (' c. IN SUMMARY Staff needs authorization to: i.i.~('I-.C../ (.;7: ~' . :..' . -'. . .. 0_ 1. !.SHk..anl exte8s.lon of;teae-;UDAG.:.::;.:: '" -. .-~ , . .... .., .. "" -~. . . . I.;; 1.1 ~.! r: :! f ., . f "' , ,... ! i.,~;,"::. -: ; : . . -: ~ t' ..i', i 2. - Cont.lnue....got:tl.t.lons;.for::Coufttlt F'OIl.t:-loan. . 3. Provide Public Morks wah I. .~randu. that ~1iiBt" ...quests -- Assess.nt Dtstrlct Engineer to proceed w1th A~i..;,..t 11011 Analysts for proposed Northwest District for .1_ 'lotto exceed $15.000. 4. To negoti ate OPA' s wi th property owners for Assess.nt Dtstrl ct Participation. 5. To conclude negotiations with County fo~ Tax split set forth In . ,aragraph (I.). Plge one (1) of this ".0 I.nd bring agree.nt to full to.lsslon for appr~va1. ~dk/ Glenda Saul - Executive Director GS:SL:IIY:~416R 5 . . ( (, , '- AGENDA IORTHNEST INDUSTRIAL PARK ONNERSASSESSMENT DISTRICT PROPOSED 1. Introductions 2. Review of MaD 3. Review of 1989 esttmated costs: Industrtal Parkway 4 lanes Uttltttes - 8" sewer Curb/Gutter/ltghts 1987 Estt..te - $1,200,000 (51 year Inflatton - 2 years + 301 Engtneertng/Inspection/COnt.> Bridges $1,214,061 Cable Creek $723,461 Devtl Canyon $490,600 (51 year Inflation - 2 years + 301 Engtneertng/Inspection/COnt.> TOTAL '2,920,000 (rounded) $1,705,541 250 acres · 10,890,000 SF . .27~ per SF 4. Review of FtnanclnQ a) Assessment District add 301 for costs. $3,800,000 250 acres · 10,890,000 SF . .35t per SF n Interest . $416,000 per year P & I 7A.6/e,F " '. 5. DevelOltent NeGotiations ( Assu.e 5 acre stte a) Public l.prove..nts (assuming SF dtstrtbutlon) 5 acres. 217.800 SF 217.800 SF X .35t per SF . Projected yearly payment $416.000 divided by 250 acres (10.890.000 SF) . .0382 per SF .0382 per SF X 217.800 SF site. b) PrOjected Development Value 5 acres - 30t coverage 532 per SF Tax Increment Available to Agency $2.100.000 X 11 . 521.000 $2.100 X 461 . $76.230 $8.320 per year -$2.100.000 $9,600 year c. c) Proposed Owner Participation Agreement (assumptlon:lbove) .' Particioant Aarees to participate tn Assessment District · Participant Aarees to construct building with value of 52,100,000 by certain date. · Agency Aarees to reimburse participant 5 years of tax Increment participation, to assist with cost of District to partIcipant not to exceed oarticipants acutal cost of blstrict based on formula used for participation. tel assume square footage distribution set forth above 217.800 SF (5 acre) X .35t . 576,230 Assume Development value of 52,100,000 - Tax Increment of 59,660 $9,660 X 5 years. 548,300 $48,300 . Full participation Assume Development value of 51,500,000 - Tax Increment of 56,900 56,900 X 5 years. 534,500 $34,500 - Full particlpat'on 2 SL:mv: 1409R .' ( '. ,.:e;(> . '",!" L::' , ..,u_:.i.thi1....,.. -- l41111'El. 11E Le OF UERVI~ ~ OF SM'~II) aum ACTIIIG AS D-GFFICIO IQMD OF JIIlERYISOR 5 OF 1M IElMRDIII) aum fUDO c:ama. DISTRICT lllet1ng of ClllloInI of SupI'vilOl'l of SIn "'nl1no Counti1. ecting U --officio IoInI of ..,1"1Iors of SIn .....nl111O Counti1 Flood Control DtltMct. .'d 1IDnda,y. _ 10. 1148. n '" j ........t: ....~..J. '.....rCM4.....,.....-IIM.,-a........"', ......._.,_,......~ey ......tt. IIInc.r E. 1II1t11 Frut H. _'" CM1..-n. Arthur L. DDran. 11111 I. 1Iuon. S. IItsley lreak. 11111 I. lllson. Secrwtaf"1' 1111 frieS 0: .....,. ....... On _t1on of Supervisor DDran. duly MCOnded by Supervisor Ir8Ik. and carried _n..,.,y. the follC11ftng resolution 11 ~: 1ItEREAS. there 11 80W in escrow wttll '10111er T1tl. Insurance and Trust Catlpany .. ...._nt "Men the SI" IernInlino County Flood Control District and tile Muscoy Wlter CClIIlpany. _raby the l11d 01ltrict 11 acquiring certain parcels of land from lIid CClIIlpany for rights of _ for the Cabl. Caft10fl ad Devils Canyon floor control projects. ....ich l11d ritflts of _ are particullrly described .1n tile deeds now deposited in lIid escrow. ad 1ItEREAS. ... of the considerations for the granting of said deeds is the reservltion of an .._nt by lIid CClIIlpany for vehicl. crossings ov.r. across and upon tllllI1d rights of _ for the us. and ....fit of l11d CClIIlpany. now. therefore IE IT THERElY ItESOLVED. tIIIt thi.loanl hereby elecllrel and ..rrants to said "'scoy Water CClIIlpany. tIIIt upon CClIIpl.tion of the construction of the channels for tile l1id Cabl. Canyon and Devils Canyon Projects. QIo road or vehicll crossings for the "I and benefit of l1id CClIIlpany. wt11 .. constructed and _1ntl1nec1 by tile San Bernardino County Flood Control District over. across ~nd upon IIch of l11d channels It locations to .. s.lected by the Muscoy Mater CClIIlpany. ...... STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO IS. Acting I. Leona Rapoport. I Secretlf"1 of tile Ioard of SUperv1l0rs of the San Bernardino County Flood Control 01ltrict. Sin Bernardino. California. hereby clrtify the foregoing to be I fUll. true Ind correct copy of the Ict10n tlk.n by said district Board of SUpervisor.. by unani.ous yote of the Imbers present. as the ... occassion. the Offictll.II1nutes of satd Ioard at its _tin; of 1IDnda,y. Illy 10. lMS. . Dated: . Septl1lber 6. 1162 Leona Rapoport Acting Secretary of the Ioard of SUpervisors of Sin Bernardino County Flood Control District. Sin Bernardino County. California REDEVELOPMENT AGLI1~Y - REQUEST FOR \ivMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: CCN - PENTHOUSE INVESTMENT CORPORATION - CERTIFICATE OF COMPLETION DATE: SEPTEMBER 23, 1988 Synopsis of Previous Commission/Council/Committee Action: 04-01-82 Resolution No. 4304 - authorized sale of 7th and Arrowhead to Rainbolt, Varden & Bird for the development of a 21,000 square foot office Bldg. to have an approximate value of $1,600,000. The sale price was $120,000. 08-15-83 Resolution No. 4495 - Amendment #1, extending construction start date to 8-15-84 and completion date to 2-15-85. In lieu payments = $16,000 for 84/85 year. (continued on next page) Recommended Motion: (Community Development Commission)) Move to authorize issuance of a Certificate of Completion. L~ S i &ture Contact Person: James E. Robbins Phone: - 384-5081 Supporting data attached: YES FUNDING REQUIREMENTS: None Ward: 1 (FIRST) Project: CCN No adverse impact on City: Date: OCTOBER 3, 1988 Council Notes: Agenda Item No. o Synopsis of Previous Commission/Council/Committee Action: (continued) 06-04-84 Resolution No. 4622 - Amendment #2 approved extending construction start date to 8-15-85 and completion date to 2-15-86. Additional In Lieu payment of 85/86 year. 06-18-84 Motion approval in concept of sale of property to Penthouse Investments and assignment of DDA to Penthouse 07-09-82 Adopted Resolution No. 4646 authorizing an Agreement for assignment between the RDA, Rainbolt, Varden and Bird to Penthouse Investment Corporation. 09-22-88 Approval recommended by the Redevelopment Committee. ...... II i II l, \ \ . 1 527R/GW/mv 10/03/88 S T A F F R E P 0 R T On April 5, 1982, the Redevelopment Agency entered into a Disposition Development Agreement with Rainbolt, Varden and Bird for the development of a 21,000 square foot office building at the Northeast corner of 7th and Arrowhead--715 N. Arrowhead in the CCN Redevelopment Project Area. The Agreement provided the Redevelopment Agency sell the land to developer for $120,000 cash. In turn, the developer agreed to build 21,000 square foot office building valued at $1,600,000. Delays in the construction of the building caused two amendments to the adopted granting one year extensions. Developer was required to pay $16,000 in lieu of development fees. On September 5, 1984, an assignment of interest was granted substituting Penthouse Investment Corporation for Rainbolt, Varden and Bird. Additional construction delays were encountered by Penthouse, who paid in-lieu fees of $16,000. On March 21, 1986, a Certificate of Occupancy was issued to Penthouse Investment Corporation for completion of the 22,570 square foot office building at 715 N. Arrowhead Avenue, San Bernardino. Since all terms of the DDA and its amendments have been fulfilled by Penthouse Investments, staff recommends a Certificate of Completio~ be granted. This request was reviewed by the Redevelopment Committee at their September 22, 1988 meeting and they recommend approval. 1527R/GW/mv 10/03/88 --, " -' i~ c~ I 1 ~ ~' 01 e>>' ~' I: ~\ .] .i -'1 8th. J r- iL J > i Ii '-, ~ r\ . . I I :. .. ~ . . I ~,--- 7th. St. ~ _a,(' '-.eD' ~ c -......--- J ~ O! .EI, ~, .- ~' ~:' A.~ I 7th LOCATION MAP . .... ..105' ---.. ---- --- 12.5' -:""'::a... Street I I .-0' . , CERTIFICATE OF COMPLETION He, , Chairman, and , Acting Secretary of the Redevelopment Agency of the City of San Bernardino, hereby certify as follows: (~ Section 1. The improvements required to be constructed in accordance with that certain Disposition and Joint Development Agreement dated AprilS, 1982, amended first on August 16, 1983 and second on June 5, 1984, and assigned on September 5, 1984 ("Agreement">, by and between the Redevelopment Agency of the City of San Bernardino, and Penthouse Investment Corporation (flRedeveloper">, 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, tc 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 (commonly known as 715 N. Arrowhead Ave.>. located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as: See attached Exhibit "A" DATED AND ISSUED THIS day of , 1988. Chairman of the Redevelopment Agency of the City of San Bernardino Acting Secretary of the Redevelopment Agency of the City of San Bernardino OlOlj That portion of Lot 2, "ode 50 of the City of San .rnardino,.s per plat recor~d In look 7 of Maps, P&&~ 1.Il~cord, of Mid County, *scribed as 'ollows: Commencinc .t . point on the South JiM of Mid lot, '2 1/2 'Ht ..~" of ~ int~r~ction of t~ South JiM of Mid lot with th~ !r~st~rJy liM of what is known as Pearl Str~t, Mid point beinc 17 1/2 feet !r~" of t~ Southeast corMr of Mid Lot 2; runni", thenc~ North lit' feet and , ind.es; thenc~ !r~st '2 feet and , inchesi thenc~ South .", f~t and 9 inches to the North JiM of 7th StrHt; Thenc~ East '2 1/2 feet 10 th~ point of be&iMinc, to&~ther with that portion of Lot 2, &Jock '0, City of San Bernardino, as per plat recorded in look 7 of Maps, Pa&~ I, Records of Mid County, *sc:ribed as foUows: (' Comm~ncin& at th~ Southwest corner of Mid Lot 2 (said point of be&innin& bein& i~nticaJ with the lK>int of int~r~ction of the East li~ of Arrowhead Avenu~ with the North liM of Seventh StrHt) thence runninc East alQn&- the North JiM of Seventh Stre~t, 160 fHt, more or less to . point I U feet !rest of the intersection of th~ North JiM of Seventh Stre~t with the !rest liM of Pearl StrHt, now Pershin& Aven~; thence North 10 a point in the North JiM of Mid Lot 2, which is J U feet !rest of the !rest JiM of said Pearl StrHt; thence !rest aJDnI th~ North JiM of said Lot 2 to the Northwest corner thereof; thence South alone the !rest JiM of said Jot to ~ point of be&inni~. VCHI&IT -A'" REDEVELOPMENT AGtNCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: SECCOMBE LAKE AREA AD HOC COMMITTEE CENTRAL CITY SOUTH STUDY AD HOC COMMITTEE DATE: SEPTEMBER 23, 1988 Synopsis of Previous Commission/Council/Committee Action: 08-17-87 Council action merged Seccombe Lake with Central City East. 08-17-88 Council action merged Central City South with Tri-City. 09-09-88 Redevelopment Committee reviewed matter. (Community Development Commission> Recommended Motion: Move that the Central City East Committee and the Tri-City Committee be disbanded. Contact Person: James E. Robbins Phone: 384-5081 CCE Supporting data attached: YES FUNDING REQUIREMENTS: Amount: $ Ward: Project: CCE and TC No adverse impact on City: Council Notes: Date: OCTOBER 3, 1988 Agenda Item No. 7 / S T A F F R E P 0 R T Agency staff is .responsible for taking, transcribing and maintaining minutes for Council Ad Hoc Committees listed above to be received and filed by the Commission. The minutes are also monitored for matters pertaining to redevelopment project areas. On August 17, 1987, by Council motion, the Seccombe Lake Area Ad Hoc Committee was combined with the Central City East Study Ad Hoc Committee which is a Agency Committee and the Central City South Study Ad Hoc Committee was combined with the Tri City Project Area Ad Hoc Committee (also a Agency Commi ttee) . The composition of these Committees was as follows: Seccombe Lake Ad Hoc Estrada - Chair Re illy Mi 11 er Central City East Central City South Rei 11y - Chai r Estrada Pope-Ludlam Estrada - Chair Re illy Flores Tri -City Flores - Chair Re illy Estrada After their merger, the composition is: Seccombe Lake/Central City East Now to be known as Seccombe Lake Estrada - Chair Re illy Mi 11 er Central City South/Tri-City Now to be known as Central City South Flores - Chair Reilly Estrada Based on the merger of committee functions, Redevelopment Agency staff will no longer monitor the activities of these committees separately. This data is provided to advise that the two Ad Hoc Committees are no longer functioning due to the consolidation and Staff recommends that they be disbanded. The action requested herein relates to Agency Ad Hoc Committees only. The matter has been reviewed by the Redevelopment Committee and they recommend the action requested. 1 528R/JLV/mv 10/03/88 REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins. Acting Executive Director SUBJECT: MBM CORPORATION POTENTIAL - TRAVEL EXPENSE REIMBURSEMENT DATE: SEPTEMBER 23. 1988 Synopsis of Previous Commission/Council/Committee Action: None (COMMUNITY DEVELOPMENT COMMISSION)) Recommended Motion: Motion to approve reimbursement of $3.072 in air fare and travel expenses to MBM Corporation and to provide a budget line item of $3.072 for "Travel - MBM Corporation". ~~ Signa ~ Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: Various FUNDING REQUIREMENTS: $3.072 Project: Various Date: OCTOBER 3. 1988 Council Notes: 4410:JER:JW:sm Agenda Item No. ? S T A F F R E P 0 R T Staff recommends that the Commission approve reimbursing MBM Corporation for $3,072 in air fare and travel expenses. BACKGROUND MBM Corporation is in the customized food distribution business, serving national restaurant chains such as Chiles. They contacted EDC several months ago about their need for a West coast distribution center of 30-40,000 square feet on 5-6 acres of land. Their preference has been for an existing building with 30+ foot ceiling height, but they may consider a build-to-suit facility. EDC has arranged for Jerry Wordsworth (Chairman of the Board), Jim Sebastian and Jerry Grant of MBM to travel to San Bernardino on September 25-26, to discuss locating the proposed facility in San Bernardino. Redevelopment Agency and EDC staff will be hosting them for tours of the State College, South Valle, Tri-City and Southeast Industrial Park Redevelopment Project Areas, and meal-oriented meetings. The Maruko Hotel has generously agreed to provide the MBM representatives with room accommodations during their stay. Staff requests permission to reimburse MBM Corporation for air fare and miscellaneous travel expenses amounting to $3,072. Attached for your reference is some background information on the company. 4410G:JER:JW:sm 2 We Deliver Excellence Post Office Box 2HSG Hocky Mount. North Carolina Z7HOL-2Hs() (919) 977-Y99H ,..-. ~- --~ Man, lement IIIII A Messoge from Jerry L. Wordsworth, Chairman of the Board and Chief E:r<<utive Officer of MBM Corporation: "It has always been my finn belief and it is the policy of MBM Corporation that any service-related organization must be dedicated to one principle and have one goal above aD others-customer satisfaction.' ' "From its earliest beginning, every member of the MBM Team has gone that extra mile toward attainment of this goal. Our rapid growth and success in the Customized Food Distribution industry is based on the premise of striving for excellence. Throughout the Company, excellence in every aspect of our daily operations and a total dedication by every MBM employee to meet each and every individual customer's needs, has placed MBM Corporation into a category alone in the food service industry. Because our focus is national account restaurant chains, we are able to specialize in many areas wh,ich allow our customer to ex- perience optimum operational success and growth from the day his door opens to the public." "I have every confidence that as we go forward into the future, we will retain and strengthen this unique quality of service.' ' " ~ ~~ h ~ W Illwm<L - As a privately held company, MBM is completely flexible to tailor-make a distri- bution program to suit the needs of any customer. Members of the Management Team provide leadership, guidance and set goals for the various departments. Most importantly, they listen-they are always available-their doors are always open- they are the . 'sounding board" for ideas and opportunities from employees of the company. ~ - 'Gro~"'th 1988 $600 MILLION 1977 $1.8 MILLION Approximately 11 years ago, MBM ( )ration had annual sales of $1.8 O'h._ In in sales operating within a 75-mile radius of what is now its Corporate Head- ~ ... u ~ ~. i . ~ I; . I . II ~! "--". ~ I.....~; .......:~ ~ ~.... . ~~~~ .~~.-' IIII I quarters in Rocky Mount, North Carolina. Today, MBM Corporation is approaching a sales volume of$600 miDionand services a42 state area. eus" 'mer Servi IIIII ~ ... Customer service is not merely a department but a company philosophy from the receptionist, accounting clerk, or a Professional Representative who delivers directly to the customer. In addition, each national account is assigned a MBM Customer Service Representative who works in-house to handle service calls from customers. Each store manager in each chain receives personalized, individual attention. When a call comes into customer service, no matter what situation has arisen, that individual will receive prompt, courteous assistance. H a resolution is not readily apparent, then that individual will be told to expect a return call at a specific time of day. Although through the efficiency and expertise of our Customer Service Representatives more than one return call is seldom necessary, this cycle will continue until the situation is resolved. ". "\.:<: ." ~1rchasing . Through the National AccoWlt Directors, the MBM Pun:hasing Depart- ment is provided vendor names and product specifications. MBM's excellent rapport with an major suppliers in the food industry enables it to purchase the high- \ ...., , -i lJA est quality product in volume at a cost that wiD benefit the customer. MBM's exper- tise in locating suppliers who meet these product specifications assures its national accounts of the same high quality products nationwide. IIIII 'lata Processing The MBM Data Processing Depart- ment is equipped with the most up to date computer hardware. The MBM Distri- bution System is custom designed and programmed in-house so that there is continuity and an efficient flow of paper- work to meet our customer's needs. The sophisticated telecommunications equip- ment used to record orders, in conjunction with the computerized distribution system, allows a store manager flexibility and built in checks so that final order pro- cessing is virtually error-free. lran~portation "' ----' i '~-. ! ~ · f"~ JJ'~' 1- ~ ~t,. - l' ; . ,'- :ri+J~ ~ 'r~.\'f;'~~'-~'~ ~'~"",.!.,.. (j)~~ J-/( I., . 0";'.' . 'J . . . . '. ' . ~ ~ . . . . "" -"':'" i~',.,.'" 'CS....' '.".' "~I 'k'; .j;. .:): "lli \1, il!~, . " \ -... .. -" ". ~', '~;:;~~;/[[)i:;{i~'lj..~'f~;" IIIII Since Professional Representatives are the "front line" of customer service. not only must a Professional Represen- tative have an excellent driving record. he must be knowledgeable of all aspects of the customer's distribution program. It is his ultimate responsibility to insure an efficient and timely delivery to the customers on his route. ~ment .. - All transportation equipment is the latest' 'state-of-the-art" equipment on the road. With access to over 500 fuel and maintenance locations throughout the u.s., the fleet of 100 18-wheeler. refri- gerated transports is maintained at the highest level of operation and maintenance possible. Far;lities - , " " 1.' .' II i ! I I :l:I'>'~Pf ,I.:.'....... . . ' , . : ""j .~ , I \ MBM presently operntes from three distribution centers-a 100.000 square foot facility in Rocky Mount. North Carolina, a 100,000 square foot facility in Oklahoma City, Oklahoma and a 140,000 square foot facility in Montgomery, Alabama. From these three locations MBM provides over 2.000 deliveries per week. MBM Corporation -where ,to mer satisfaction is a measure of .,uccess as we meet the special needs of special customers. We can supply a Customized Distribution System which gives a restaurant business a solid foundation on which to build its customer base to grow and become nrofitable. :Jt""".""-'~~' ;~~.~~ . : :~'~~W~~!P1lt ~~....~;~,~~ REDEVELOPMENT AGE~\' I - REQUEST fOR CG"1I1ISSION/COUNCI L ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: NH PEC BUILDING #1 DATE: SEPTEMBER 22, 1988 Synopsis of Previous Commission/Council/Committee Action: 6/05/75 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 Lon's Electrical Service to repair electrical problems existing at the Public Enterprise Center in an amount not to exceed $15,000. i?n!:1.,J ?J H Supporting data attached: Yes Hard: 384-5081 6th Contact Person: James E. Robbins Phone: - FUNDING REQUIREMENTS: N/A Project: Date: NH OCTOBER 3, 1988 Council Notes: 4405G:JER:ND:sm Agenda Item No. ~ Synopsis of previous Commis. ~n/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. 08/11/88 Commission authorized Acting Executive Director to execute CUP forms submitted by Chaparral. 4405G:JER:ND:sm 2 S TAr r R E P 0 R T Staff has recently learned of an electrical problem at the PEC. There is a 480 volt supply running into 120/208 volt panels. Evidently, this condition has existed since the building was constructed, but was only recently discovered. Jim Carr of Paige Electric likens the situation to an overinflated tire. It might be fine for thousands of miles or it could burst tomorrow. Because of the potential danger of the condition, staff immediately requested that Mr. Carr prepare an estimate of the cost to correct the problem. We also had the electrical system checked by Mr. Charles Emory of the City Building and Safety Department. He concurred with Mr. Paige's evaluation and noted several other substandard conditions, as detailed in the attached copy of a Correction Notice. Staff presented this item to Committee on September 8, with the recommendation that bids be obtained for repairs. The item was to be forwarded to the Commission upon compilation of the bids. Thirteen electrical contractors were asked to submit bids; three responded as follows: Lon's Electrical Service Paige Electric Add-M Electric $3,459.00 5,840.00 5,950.00 Some of the other electrical problems which exist also require immediate attention; to wit: * The emergency generator is inoperable; and The main circuit breaker has been tripping due to a short in the electrical system. It is recommended that the emergency generator be repaired to bring the building up to code. Lon's Electrical Service was the only company to bid the project at $48.00 per man hour plus materials obtained at a fair market price. * With regard to the main circuit breaker, an electrician found that the short could be repaired temporarily by disconnecting the ground fault. However, it was noted that the breaker had tripped so many times, that it was possible it could not be reset the next time it tripped, thereby causing a long term power outage in the building. To prevent this from happening, Staff recommends replacement of the main breaker,. Again, Lon's Electrical Service was the only company to bid this project at $48.00 per man hour plus material obtained at a fair market price. Attached for your review are copies of the estimates for the above-referenced repairs. Based on this information, staff recommends authorization to retain Lon's Electrical Service to make the necessary repairs. 4405G:JER:ND:sm 3 i ~ i . , : ' ~ : , : ' _, ' . ; . ; . ; i I : ;' ~ ~ 1<:' ~~"p.~" ~~ - .~- """"!~",,",,' . ~ ' : ' " ; ~, ' !' l ~ .,' ".~IIno' ~,...,.~ ~tit4", OF iulLDINO AND SAFETY , . ," JIIIanI: .t 1171 1<< . ..,r"~ ~,~......~~NU<to!4 ~_I-Wrl~ "~ ".,,\:: ~ NOTICE :'.;:~; ~:lra"~ f>_~~ "'1''''- -~p.'r 'N' ,~~f) I"ALr~"PpL), a.-.JTH -It/.I~ ~~.r 16-+,,.J.J'~ ~ .7-;1/. 1,7'u.z>~.o I:JIP Y'1i "#II..... ,.h'~ __ .' '. - '.-- ",__,t~.,., ., . ~"-h~'U""61l ~l;d.JJ-. 21J"~ ~ "",-:_t~41 R"". - ,-.: Jf ~ .#ItI.~ -U9L 749 t:.. E e>"t.J ,. L L '" u ~- ~;.z~~~#r ..r~R.~ r~EY'II~e- :.:&n'r~ JI~rP.J20PEIP V~~ 'T',M/;JE, +-.UJT"'~' ,r/WI~c.r AJt!..t::..J'IJW6'L 4141#.~-rOR, , .. ~--~11 HA/IV ~t1l.IAJt'E~ "Pltf'~~ ~J.s~ htJ-r f?~9LAG~ ;-r:... a..;~tM... 'U".&U~~IJ ,*tP6VIJLr ~ j..l~ is _ :r:utt~~:"'A( 1) ~EP L Itc.~ ..., ,T~ j: u.r~ ~,~ ., ~ '! _~~ J..~~-r LIt:. tl ~~ ~/l<*' j j;" rL vS~S.f(~ a.&v 4f,t;:-~.~.f'P~" P~IVF~.s oI:.~'X~~.. 'f- ;' '~'_'~hf. ~U4,JI""", Fo2 en/; ee:' . ~.~~~.;'_ ~..r~., i __..... ~ :;...:' , 0......... CorMctioM ... c.H for ReIn....... .te_~ ....... -_~ _ ....... __ _ .._a__ .A___..a___ _.l......~ - . : : ':~ 1111 ,~ I ;" ' ':~. I.. . :;' . , ,. 'I' '!' 'I,' ':,;', i ' I r, '.; ;; :1 ., '/!::.';:::i,:1,:,! ',: UK: "~'''''''''~''''''''''''''' :~ ,.>,". ('- ~""~I\"i1I1I"","'I"'''"~ a o e o & () Ci) o c c o e e e o e FORM 211-3 ............~_..car-.__'"1J 'rn+,osal LON'S ELECTRICAL SERVICE, INC. P.o. Box 6447 379 S. Sierra Way Unit "F" SAN BERNARDINO. CALIFORNIA 92413 (714) 185-4469 or 824-5010 COnttw.1or UcenIe No. 440463 Page No. Of 1 1 JI CIn 01' SAN BERalAR:lINO ",ONE 888 2220 PATE IZPTEMBER 15, 1988 _......E SUITE 213 GATE Of' 'U<NI _ LOCAl1ON 1505 W. BIGHI.ARP AVE, IAN BERNARDINO, CA _ ",ONE hereby to lumlah __rial and labor - IlOl'IlPlate In accordance with lpeclflcatlonl below, for the lurn of: ::'CIolIara (f/ ,883_00 ). "I _teriel .. ..,.nteeCf 10 .. '1 ....ctfted. AI wortr. to ... ~ In. .wortl....... ..nner .ccordtnllo ......rd pract6cel. Any eItltrat60n or ...tion .,... epecIftcet60ne be- low tnwotvtng .xtra COli" wit be ....cuted onty tIPOn Wfftten ordera. Ind .... McOlM en .~ eM". ower Ind lboW 1M ..timet.. AI .........,.. COftttnPnt upon atrtk.., ICcl~ .... or....n beyond our control. Owner to carry ...... tomIdo end .....r Me....ry .....nc.. Our __.ra I,. tully Cowered by WCMtc-.n', CoMpenutlon InauNnc.. ~Id lIIgnature _: TNI_I_ybe _wn by UI . not acceplld within Sixty (60) ---lIIIYI. w. _y_ ___ MIl .._tel lor; PHASE OlE 1. Will accaapUah the followillq iu-. a. RiulOft two .xiatinq 120/208 VOlt, 100 amp, 3 phaae panela, I?oth panea an improper. b. Inatall two n_ 100 up 311 480 volt load oen~re rated at 100 ClIpa .ach with three, three pole SO amp breakers ill .1 p_l and four 3 pole 50 _p breakers in .2 panel. 2. Will aCCClllpUah the above i~ for $2,883.00. PlIYDWnt achedule. Purchue order required. a. '1,500.00 when .qui~nt 18 ordered. b. '1,883.00 Det ten day. fZ'Olll CCllllpletion. 3. Pe=its .ball be paid by owner. a. I.on'. will obtain permit. _d coordiDate inapectiona for panel replace_nt only. c. The _alters, .ureties, lJueranton and eradonera of this propceal, :lointly and aeverally further prCllliae to pay all cceta end/or expenaes of collection, includil\9 reuonable attorney fee., which _y be incurred in the collectiOl'l of thia propceal or any portion thereof .5. If work is to be cOI'Iducted under California Pnvailinq Weqe 1..., ccet of this quote is ...nded to $3,C59.00. Arrrptanrt of 'rDpDsal- TIle ebove pric;.I, aoeclfications and conditions are utiafactory and are hereby accepted. You are authorized Signature to do the work... IplcHi.d. Payment will be made .1 outlined above Date of Acceptance: Stanlture FOAW",I8-3 ..........trom ~'WIc.Grol:Ofl,..... 01"1 ./'" /-- ....4 --- --- --- r ------ ./' // // . '" , " ,,-- / / --- . . "- ~ "' . ." ....--- ./' / --- // ./' ------- // /--- ,;' . . '-, - . / ---/ --- / --- ./"/ .... ........-/ " . ., .; / .... --- ( /~~-:~~O:::~ ~. ......---- 71 S N. ARR()tAJH~.4D.4IJ~ SUIT;; ~/~ / g A.AJ Ja~P..NAADI.)JO. lOA, 9'ZL.{O' . ________~_.______..~____________.._____. a PAIGE ELECTRIC COMPANY F P.O. BOX 659 R 380 WEST A THOL o SAN BERNARDINO, CALIF. 92402 M TELEPHONE 884-8268 ":;:-"L,.::~-rJfi1X:;f}' ";;-_j~" -, -\~.; ;"^^-;:,, ~._-_,:t::' ',,,,:,,,~ ,'",;">;" t SUBJECT PtJGt.-lt! EAJT~RPR..I8EBUILIH.JJ~I'~llI)W,H(G"'LA.NJ)/~&NBe/J1JMl'/A;fJDATE q / g / srcg MESSAGE ( JAJSAPoI; H,.VfJU"A(~ POUJIS'A.P4.AJEt. {:'OR 7 ~fjR Mau.J.JT&D AlfJ. (j,JJDlr/O/J6RL<: 1-::w~ A A ~ P'-E~S'E'f) To ~IJOTE ~~ Op c$ Sj ~q(J 100 To TJJ.f<rAn A q'U) (/()(..1" POwllll. PAAJtl(... I 0 f<tEPLA~ E')(ltSTIAJ. 'LO~ VOC-TPCU UIER PI1>>-IELIJv TIltG M.AlA) p()W6'R ROt)M.TH-E G"lIJfl'1.U& .~ 4 5 ~?-CqVO'-TP4N.-L '~)J.QrR.no~OQ.lItrG-WlT1f ~~f)Od5'.-r;.,./& PM.JGL(OLJAJDlTtQ)JWAS!Jl&:(JlJ6U1) ~ <i As PEI1. () U R W 11l.(1J(!, I AASP&a"ICW I)/.J fl/lIlnJ *r t'!OJ.} /Z 11W~1J By M,. ,~H-AlU.~ EAJ.1;II.V CS~JJ 1M ~~ ,,~ELEaLICALI)J6PECrclt) lJlJ g/'ZL( /g8.1 F You HAVtGA.JVY(Vp~W',(JJJ.) ItEMS F'EE1.f:fl.str70&u. t.Js, i: l",~--~~J~~~I S......A-WII-<<. ; REPLY ff~ >1 .;r , -;E t i 91 Ii ~-.;;" SIGNED DATE '"'"" _~_h_i~"flt&tatlf,f~l*,~~f$ff*iJ1f'%'iJl'%'#~;j'i'~~~~li,r~~~~ :~Il~,*,#i!jKX';" , SEND PAITS 1 AND S INTACT. cerbon... POLY PAK (SO Sml ..P..72 PART S W1U IE RETURNED WITH REPlY. / / % '{"'%!'t'x#>r~J!fJ';,""V""L~ ~.DII:a..._ .S .72 '<t - ----- ._.~- Add - M Electric Inc. 385 so. ARROWHEAD AVENUE SAN BERNARDINO, CALIF. 92408 PHONE (714) 884-8233 Lic. No. C-280712 Name Redevelopment Agency c/o Miller 715 N. Arrowhead, Suite 213 Public Enterprise Building PROPOSAL AND CONTRACT Date September 16 Associates San Bernardino, CA 92401 1505 W. Highland Ave. , ,19~ Address Job Address The undersigned agrees to furnish and provide necessary labor, materials, tools, implements, and appliances to do, perform and complete in a good workmanlike manner the following: Per bid specifications Bid Item 1: To furnish and install 480 volt power panel to replace existing 208 volt power panel in the main panel room. All the above work to be completed for the sum of and no cents Five thousand nine hundred fifty dollars Dollars ($ 5,950.00 Any alterations or deviation from the above, involving extra cost of material or labor, will be executed only on written orders for same and will become an extra charge over the sum mentioned above. All agreements must be in writing. In :he event that it becomes necessary to institute suit or to employ an attorney to collect any payment or payments due the under- signed for labor or materials furnished under this agreement or any modification thereof, then you shall be liable to the undersigned for tlJe court costs and attorney's fee shall be in an amount equal to one.third of the amount for which recovery is prayed. Term.' of payment shall be as follows: This proposal is void if not accepted within 15 days. RespenlY sUbm~ ~ B~t.~//LLlL<~/, /~Z'L President "Contractors are required by law to be licensed and regulated by the Contractors' State License Board. Any questions concerning the res- ponsibilities of a contractor may be referred to the Registrar of the Board whose address is: Contractors' State License Board, 1020 "N" Street, Sacramento, California 95814." ACCEPT ANCE ou are hereby authorized to furnish all materials and labor required to complete the work mentioned in the above proposal for which agree to pay the amount mentioned in said proposal and in accordance with the terms thereof. ACCEPTED AND AUTHORIZED BY ... Signed Date ,19_ Signed co, '~~i'l'ff~gvvn"~ii'!j~"mH~~~I'" c .... o o o ('I () o o ~) c ( o o o c- F0AM211-3 .............~IIE_... 'IUl Jrnpn.aal LON'S ELECTRICAL SERVICE, INC. P.o. Box 6447 379 S. Sierra Way Unit "F" SAN BERNARDINO. CALIFORNIA 92413 (714) 88504469 or 824-5010 COntrKtor LIcense No. 440463 Page No. 1 of 1 Pages DATE ~fo AGENCY, CITY CI' &>>1 BERiARDINO ",ONE _ LOCATION , A ond CODE CA 92401 1505 W. BIGHLNm AVE. 1>>1 BERNARDINO CA _ PHONE DATE 01' PLANS .r IIrllJlo8r hereby to furnlah meterlal and labor - complete In accordance wltll apaclflcatlona below, tor the aum of: TIME >>ID MA'l'ERIALS*$36.00 "'_nl \0 be _lito e. folio..: WQ; COMl'U:TIQ; r ~ hour. Mataria18 fair _rket rice.dolara (S ). "I .tenal II ....,.nMK 10 IN .. ...C......, "I wortl; to be ......1ecI an . wOftl:..nllka ..-r IcconMng to ....rd ~. Any ......tion or __tIlon '""" ..-ctftcat6oM be- ... InvotYIng.lItre coate.1M be I.acuted onty upon .......en onIltI, Ind... Mcom. an extnl eM,.. 0"" Ind above 1M ....... "I ..,....nta ~...nt upon .trIk.., Icel- N_ Of ....,. ",ond our control. 0wMr to 08'" fire. torNdo Ind 0.....' nec....ry Nuranc.. Our wortl;.....,. tully oo.erec:I by WCM't1Reft', COM~ftMtion .....nc.. Au\Ilot1zad Ilgnature _: ThIe _.., _y be _rewn by US II nolecceotad _In dey.. We .....,y _ ~_ _ _tee tor: PHASE '!'WO 1. will acCOJlllUah the followinC;' a. _.tore ..rvency 9enarator to operatinc; condition by accoIllllU.hinC; the followinql (1) CoIIIpletaly c~an 9enarator , .urrolmdinc; area. (2) lnatall n_ .tend-by battazy. (3) '!'est all control c1rcuita and in.ure prcper operation of COIlPonent.. (4) '!'est autClll&tic operation which includ.. interfacinc; relay with the So. Cal1foznia EIii.on Cclmpany. b. Saw die.al fuel in day tank and Imderqround tank tasted. (1) If di..el i. contaminated, will direct ClImer to _ow contaminated fuel nmowd and new fuel ~nstall.d. Lon'. Electric does not have proper permita for fuel nmoval or di.posal. c. Upon cOlllpletion, will conduct a four hour run t.st on venerator. 2. Will accCllllpUah the abow iten for U- and _terial. a. Time $36.00 per IIl&n hour. b. Material. Mataria18 charqed out at fair _rket price. 3. pay.nt .chec5u~. purchue order required. a. Upon COlllpletion. 4. Wi.1.1. provi._ _ oa.p1.e_ _.,.,ounUns of all IIl&n houn and _te:cial.. 5. 'lbe makers, .u.retie., quarantorli and endorMrs of this proposal, jointly and _verally further premise to pay all costs and/or expans.. of collection, includinc; reasonable attorney f..s, which _y be incurred in the collection of this proposal or any portion thereof 6. *If work i. to be conducted under California PevaiUnq Waqe Law., IIIan hour rate is uended to $48.00 per man hour. Arrrptanrr of 'roposal- TIle above price., _clliclltions and conditione are Ntilfactory and ar. hereby accepted, You .r. authorized Signature to do the work.. apectfied. Payment wHI be fMde .1 outtined above. Date of Acceptance' Signature FORM'1'e-3 .............orn~'II1c,Oroton,..... Ol.'1 ( ","'~l"""'illlltm~~~".~i f!nt,..mh't'~'t, ';~ ( c o o o o o o o () ") ') ') o .[ c c FOI'tM2tl.3 .......__~~e..tIrl-. -1M11 Page NO. 01 Pages 1 1 IIrnpnsa! LON'S ELECTRICAL SERVICE, INC. P.O. Box 6447 379 S. Sierra Way Unit "F" SAN BERNARDINO. CAlIFORNIA 92413 (714) 885-4469 or 824-5010 ContrKtor L.icMIe No. 440463 OPe AL .. DTO REDEVEI4'MENT IGDlCY, CI'l'Y '" UH BEJlU.R)D10 PHONE 888 2220 DATE SEP 15, 198e _.......E 213 _ LOCATION _ PHONE .r IIrlqJoBr hereby to lumlah materiel and labor - oOftllllete In accordance with _clllcatlona below. for the .urn 01: 'l'IME 5 MATERIALS. *$36.00 PaymenllO be made .1 __: UP~ CQG>U:TI~. r _ bour. llatarlu.. fair aark.et doeodollare ($ ). AH ........1 II .......nteecllO be .. apectfled. .I.ortt to M ~ In . ...__....e _nner accord.. 10 ltandard ~. Any "'ration or __tion tro. ~ be. AuIhortzecI tow tnwDtrinG all'tra coate .tIt H ...cuted only upon wrttten onIera, and wll McCHRe an __lure :.x: ~::-~y:" --:: c::;*'::~~~ -:.':"::.:=-:, ~:.~~~- NotI:""* proposal may be tMurance. Our work.,..... fUlly QOWred by WortlllHft'. C........tton ...".nc.. wtIhdrawn by.. "not accepted within IIIYI. w._y___--.-..ltor: I'HASE 'l'BREE 1. 'Will accc.plbh the follawLnqa a. De~rm1De cauae of ground fault iDdLcatlClr1 CIrI: -ut pene1. I'nHntly, IIa1n panel 18 indLcatinq a ,round fault. b. (l)t&1n Sta~ CertLficaUClr1 for ground fault .un bnaker lf needed. c. Test VUiOU8 circuita and bnakeR frClll main d18tdbuUon panel to 1o~ cen~n throuqhout buildLnq if nqulred. d. In"...tiqa~ and npair circuits that are pnaently non operaUonal. 2. Will accOlllpU.h the above ltalll8 f~ time and ..tedala. a. T~ $36.00 per lUll hour. b. Meterials. Materials cha.J:lied out at fair ..dtet price. 3. Par-nt .chedule. Purchue order nquind. a. Upon cOIIIpleUon. 4. Will provi.de a COIIIplete accounUng of all lUll hours and _tedala. s. '!'he ..un, .unti.., vuuantoR IIDd endoraen of tIli. propoea1, jointly and severally further prCllli.. to pay all coeta and/or expena.. of collec:tiClr1, inc1udinq r...onable attorney f_., which tII&y be incurnd in the collection of thi. propoaal or any portion thereo 6. 8lf work La to be ccncSuct:acS UDder CaUfo=i.a prevailln9 Waqe x..... -.n hour rate i. _nded _ $48.00 per .an hour. Arrrptanrt of 'rnposal- The Il1o.. P<icl1. loocllications and condition. are utilfactory and are hereby accepted. You are authorized Signature lO do the wort< II Ipeclfled. Plymlnl will be made II outlined .bove. Olte 01 Acc.ptance: SIGnotu,e FOAM2'8.3 ~trom~Inc.GraIDn.""""I.'1 REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: TC - FIRE STATION DATE: SEPTEMBER 23, 1988 Synopsis of Previous Commission/Council/Committee Action: 2/16/86 Mayor and Common Council directed the City Administrator and City Treasurer to develop a financing plan for a new fire station, fire equipment, computer dispatch system and a new telephone system. 1/8/86 Mayor and Common Council approved authorized the selection of a consultant to develop an RFP for a telephone system for City Hall. 3/17/86 Mayor and Common Council approved assessment district for construction of fire station and acquisition of fire equipment. 4/21/86 Mayor and Common Council approved contract for computer aided dispatch system. (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to approve execution by Chairman and Acting Secretary of Grant of Easement to Southern California Edison for Fire Station located on Vanderbilt Way in the Tri-City Project Area. ~fy.JJ}ik;L . gnature \ . Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: 1st FUNDING REQUIREMENTS: None Project: TC Date: OCTOBER 3, 1988 Council Notes: 4411G:JER:ND:sm Agenda Item No. /() Synopsis of Previous Commission/Council Action: (continued) 5/5/86 Approved contract for architect on new fire station. 7/7/86 Community Development Commission continued item until August 4, 1986 and subsequently, to September 8, 1986. 7/21/86 Adopted Resolution 4907 approving a Regional Facilities Agreement for the construction of new on/off ramps on 1-10 at Waterman, the acquisition of a site for the Tri City Fire Station and the installation of median landscaping on Waterman Avenue. 9/8/86 Tabled Certificates of Participation item. 9/23/86 Accepted and filed report from City Engineer regarding results of soils investigations. 10/6/88 Resolution 4934 approved acquisition of Fire Station site from Rancon; Mayor and Common Council approved lease of site to City. 4411G:JER:ND:sm 2 S T A F F R E P 0 R T BACKGROUND Per a Regional Facilities Agreement dated September 22, 1986, the Agency had the option to buy a fire station site for the sum of $375.000 payable by a Promissory Note bearing no interest. The Agency exercised its option to purchase. and executed a Promissory Note on December 30. 1986. The fire station is now in place, and Southern California Edison has requested a Grant of Easement be executed in order that they may have access to underground electrical supply and communication systems. Recommendation to execute the Grant of Easement was made by staff and approved by the Committee on September 22, 1988. 4411G:JER:ND:sm 2 WHI:N ItIECOItDI:D MAIL TO ~ SoutMrn CeIItomIII ..... c:o.p.n, lEAL PIlOPERTIES MIl ADMINISTRATION P. O. lOX 788 llALTO. CALIFORNIA 12376 ACE AllOW TH" UNI: POll UCDRDat.. WI: GRART OF EASEMERT (Corpo...tion) _'C'l' I-~ _-.n ..." ... San lemardi no 1-2003 54-103 .... I-r.:t=r ." ....... 207-2218-1 fI):j. 5-31-88 THE lEDEVEL.OfIMENT AGENCY OF THE CITY OF SAN IERNARDIN) (herei naft... ref...rec" io-.. -G..anto.."). he...by ,..ant. to SOUTHERN CALIFORNIA EDISON CDtPANY. . corpo...tion. it. lucc.no... and .uigns (h....in.ft.r ref.rred to u -Grant.I"). an H....nt and ri....t of w.y to COfI.truCt." us'. ..intlin, oper.t.. "t.r. add to. rep.ir. repl.c.. recon.truct. in.pect and .-..oVI .t any tiN and froll tiN to ti.. und....round .l.ctrical 1UPP1y Iyst_. and c_nication Iy.t_s (....r.in.ft.r ref.rr.d to .s -.,st_s"). consi.ting of wires. und....round conduit.. cabl.s. vault.. anhol.s. handhol.s. and including above-ground enclo.ures. ..rt.... and concrete pads and oth.r appurtenant fixtures and equip-.nt IIIClnlry or ullful for elhtributin, .lectrical en.rtY and for tran_itting intellillnc. by .l.ctrical ..ans, in, on. ovlr. undlr. .cro.. and ,'ong ttlat c.rtain real property in the County of San lemardino. Statl of Califomia. de.cribed .. follows: 11:\ A Itrip of land. 10 fNt in wielth. 'ring within Lot 31 of Tract No. 12034. .. lhown on Map recordld . in look 168. ,.lIs 75 through 17 inclusiv.. of Maps in the OffiCI of the Recorder of laid County; I!rl the centerlilll of I.iel Itrip being de.cribed u follows: I IEGItlNING .t the SoutM.t com... of I.id Lot; thenc. Northea.t.rly . elistanCI of 115 f.lt to . point that is elistant 17 fNt Euterly. ....ured at ri....t ....,.. to the We.terly lin. of I.iel Lot. 'I! I' The .idelilll. of laid 10-foot ..._t to be ..tendecl or lhortlftlcl to terwlinat. .t the South.rly and WI.t.rly line. of laid Lot. (, The Grantor .g..... for it..,f. it. lucc...or. and u.ign. not to .rect. pl.c. or ..int.in. nor to pennit the .rection. pl.c_nt or ..intenancI of any building. ,lantlr bo..s. Hrth fill or othlr Itructures ..c.pt walls and fences on the above described ,.al property. Th. Grant... .nd its contra-etor.. ,"nts and ..,loy.... Ih.ll hav. thl ri....t to tria or cut t.... root. as ..y Ind.ng.r or int.rf.r. wi th I.id Iy.t... and -Ihall hav. f.... .cc... to I.id .y.t_s and ev.ry ,.rt the...of. at .11 ti..s. for the purpose of ...rching the rithts h.rein ,ranted; provided, howev.r. th.t in ..king Iny ..c.vation on said prop.rty of the Grantor. the Grant.. Ihall ..kl the I'" in luch a ..nn.r .s will cau.. the ,...t injury to the lurf.C. of the ,round .round .uch ..cav.tion. and .hlll repl.c. the earth .0 .-..ov.d by it and restor. the lurf.C. of the ,round to a. ne.r the I'" condition a. it was prior to luch ..cavation .s is practicabl.. EXECUTED thi s el.y of .19_ THE lEDEVELOPtlENT AGENCY OF THE CITY OF SAN IERNARDINO Iy Iy &IlANTOR " (PLEASE ATTACH ACIOOILEDGMENT FORM HERE _ ) S 18 " a g I i ,I a Iz . ,-4 -4 I. - II o ,0( Z 1-4 I; II = . . il~ -, .' ~' .1 .' =1 II - . II I II - .. I z 0 ~l z . III .. < p . r n C . III ~ r . i :;i z . III 0 0 ~ Z n p ) \. WHEN _CORDED ....L TO -' >> IcMIthenl CeIIfomIe .... --....r REAL PROPERTIES AND ADfUNISTIlATION P. O. lOX 788 RIAllO, CALIFORNIA 12376 ACE ~ 'I'M. UNK POll acoItCl&II.. USE GRANT OF EASEMERT (Corporation) _,CT 1--- -.. "P ... 1M "manU no MJO-ZOOO 1-2003 54-103 r.. t~ -.. -... 207-2211-1 III :ja 5-31-88 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN IERNAltDINO (hereinafter ftf.rr.i-to al -Grantor"). h.r.by ,rantl to SOUTHERN CALIFORNIA mISON c:r.NI'f, a corporation, its IUCcellOrs and a..igns (h'l'.inaft.r ref'l'red to al -'rant.."). an HI..nt and right of way to COIlltru.t, UI', ..intain, op'l'ate, alt.I', acid to, repair, replac., reconstruct, inlpect and .-..ew. at any ti. and fl'Oll ti.. to ti. und'l'gl'ound .l.ctrical .upply IYlt_s and c-.nication 'Ylt.s (hereinaft.r ref.rred to as -IYlt_S"). consisting of wires, und.rground conduitl, cabl.s, vaults. .....hol.l. handhol.l. and including abovl-fl'ound enclosur.s, _rbrl and concrete pads and other appurtenant f..turel and ""iJllllnt nec...ary 01' ullful for distributing .l.ctrical energy and for tranlllitting int.lli""c. by olectrical .ans. in, on, oy.r, und.r. acroll and along that c.rtain real property in the County of San "manlino. Stat. of California. d.lcribed as follows: A Itrip of land, 10 fHt in width, l,1ng within Lot 31 of Tract No. 12034, AI lhown on Map reconl.d in look 168, pagel 75 through .7 inclusiv., of Mapl in the Offic. of the Reconl.r of laid County; the cent'l'lin. of laid strip Ming delCribed al follows: IEGIf.fING at the Sout_lt corner of laid Lot; thence Northealt.rly a distanc. of 115 fHt to a "int that is distant 17 fHt [alt.rly, .alured at riFt &rIfl.1 to the lllelterly liM of .aid Lot. The lid.Hn.s of laid l<>>-foot eu-.nt to M .Iltondecl or Ihortoned to unrinate at the Southerly and Welt.rly linel 0' laid Lot. (.) The Grantor agrHI for itl.,f. itl IUCC.llorl and IIlignl not to .rect. plac. or _intain. nor to pel'llit the .r.ctiOn, plac_nt or _intonanc. of My building, plant.r boX'I, earth fill or oth.1' Itructurel .xc.pt .alls and fenc'l on the abov. delcribed real p,..,.ny. The GrantH, and Hs contractors. .gentl' and 1IIP10YHI, Ihall hay. the riFt to tri. or cut tree rootl .. _y endanger or intirf.I" wi th laid IYlt_s and Ihall have free acc... to said lylt_1 and lV.ry part thereof, at all ti.s, for the purpose of .xercising the rights herein ,ranted; provided, howv.r, that in _king any .xcavation on said property of the Grantor. the Grant.. Ihall _kt the I" in luch a .....n.r as will caUII the '.alt injury to the Iurfac. of the ,round around luch .xcavation, and Ihall replac. the .arth 10 "-Ov.d by H and reltor. the lurfac. 0' the ,round to as near the I" condition .. H was prior to luch 'Ilcavation .1 il practicabl.. EXECUTED thi I day 0' , 19_ THE REDEVELOPMENT AGENCY OF THE CITY OF SAN IERNARDINO Iy Iy .6IIANTOR (PLEASE ATTACH ACKNOWLEDGMENT FORM HERE.) Ii n 18 I' I I" I' .. c - I: I: R III I~, . z ,a, ~ ,; .' - '. ~I i< I '-I " ~. a: 1= i~ "' a, ~~ t -I ~ - a . i i II . . p n . .. r i ; . ' . .. D D . - r; z n ~ " ~~ -. u....., .a. .... - ....~".. _ 8..., . . , . .. r ... 0tI~ nu !M' .... __1M) ) , "- .'- C .~..A ( .. "'~M I. . . '.. . , , .~ l ':. i _ ,.- .J I IN ~}.t.., . ,,, t ~ M,,~.... .. *' . 31 F \ '~ ~ ~" . .;. '\ . ~...o ". " - - .... . . ., . i!"1..' _ ~~ , - ", I... , - .--.-.~ . ... ....,. , . 8 P.I I, '. " . '.", '. . . ~ .' .' ~- '. . . . ..., ~~~<;".rr '. '1~ ..,I~'~. . ~. . t ~... ~7' · . . .......... ' a... .. . ... '. ... . . . . . .;. ,\ . '.. . ..... . . . '. ::.., : :. ; ':':. '.~' ',:."':. ~'.: ..' '. . .~. .o. . . .~ .-, . .. . ~.' . . .. .'.;'. '114111'~~ ..... . ,. .., ~,. ~.'AIIIJ"".. '..~ : .~. .:~..' , ... ., . - \ . . ~ , . . , . · riN~r:t.. I~ . t \:....:-' c · ~-,.~. "r.~' ~ r~ . "t f ~~I Ii. o I '. ..... . .:;' .... ." y . ~ / " ./. .. -.. - ~ I _:. .__.......~~.. .'- .. '" () o Q .'. ,.. ...- ~~~.J en. ~'. ~~ ......, flit 'Ct :l (l c-I~ ~ (f ~ ~ o 0-- ..S ;~'...:.:.: . lit . - .. tft ~ F 1~1~ ~ ,. .. :a - - ')..~~ r ! I I I . .. . .. ;1:.. . . . .il '~'I' .. ',' "1- II J~l II II I~i ..;~- .s~" :.-tt';"if..~tEi F / I / . ~... ;1,;....... ., . . I / i , I . ".'';' !; :.... '. .~. . I I . '. .l. b G .~ I I. i -tlIIEI . 's 'i-fa .Iit liP I Iii I;:.. : REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: OWNER PARTICIPATION AGREEMENT - MARUKO, INC. DATE: SEPTEMBER 23, 1988 Synopsis of Previous Commission/Council/Committee Action: 07-20-87 Owner Participation Agreement signed per Resolution No. 5032 08-03-87 Assignment - Maruko to Mitsubishi Resolution No. 5033 05-16-88 Motion Re-Assignment from Mitsubishi to Maruko Recommended Motion: (Mayor and Common Council) A. Move to adopt RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZI~G THE EXECUTION OF A LETTER TO MARUKO, INC. PURSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. (Community Development Commission) B. Move to adopt RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LETTER TO MARUKO, INC. PURUSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. /2 ~ / 2'}. ~ y ~~-:-;__-. 1./ :; JI.--t.-<..-c' Signature (?~~ I Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: YES FUNDING REQUIREMENTS: Amount: $ Ward: Project: CCS No adverse impact on City: Date: OCTOBER 3, 1988 Council Notes: Agenda Item No. I / 1529R/JLV/mv 10/03/88 S TAr r R E P 0 R T The Chairman has been approached by Maruko, Inc. inquiring as to the feasibility of the Council/Commission approving proposed financing procedure, whereby Maruko would sell undivided interests in the Hotel and would then lease back these interests. At the end of the lease term Maruko would be obligated to re-purchase the interests (and the owners would be obligated to sell). The result would be that Maruko would remain in possession and control of the Hotel. The original Owner Participation Agreement required that any sale of the Hotel would require a concurrent transfer of the control of the Convention Center. Since in this proposed transaction it would not be in the best interests of the City to allow transfer of the Convention Center to the numerous individual investors, the proposal included waiving this provision. l529R/JLV/mv 10/03/88 BERNARDINO 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA 92418 JAMES F. PENMAN CITY ATTORNEY (714) 384-5355 September 13, 1988 Maruko, Inc. c/o KOAR, Inc. 555 S. Flower Street Los Angeles, CA 90071 Re: Owner Participation and Development Agreement by and among the City of San Bernardino, the Redevelopment Agency of the City of Bernardino, and Maruko, Inc., dated July 20, 1987 (the "Agreement") Gentlemen: This letter shall constitute the approval by the undersigned to the transfer by Maruko, Inc., a Japanese corporation, of undivided interests as tenants in common (the "Interests") in the "proj ect" (as defined in the Agreement) as hereinafter described. The interests shall be conveyed to purchasers who shall each immediately enter into a lease of each such purchaser's Interest with Maruko, Inc. Pursuant to such Leases, Maruko, Inc. shall agree to assume and perform all the obligations of the "Redeveloper" under the Agreement during the term of such leases, and Maruko, Inc. shall re-acquire such Interests either during the term of such leases under certain conditions or upon the expiration or termination of such leases. This letter shall constitute the approval by the undersigned to the above-described transfers from Maruko, Inc., to, such purchasers and from such purchasers to Maruko, Inc. as required by Section 6.5 of the Agreement, and any and all other documents executed and delivered in connection with the Agreement or with respect to the Project or the "Convention Center" (as defined in the Agreement). The undersigned does hereby approve the form of such leases as shown on Exhibit "A" attached hereto and incorporated herein. Should such leases be changed in form or content, further approval shall be required. < ...' ',. "'^~.,~ ::t:i-,-J}:'" '7 Maruko, Inc. September 13, 1988 Page 2 The undersigned hereby waive the provisions of Section 6.5(e) of the Agreement with respect to the foregoing assignments and acknowledge that no transfers of the "Operating Agreement" (as defined in the Agreement) shall be made in conjunction with the foregoing transfers. Very truly yours, THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Mayor APPROVED AS TO FORM AND LEGAL CONTENT: THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Chairman APPROVED AS TO FORM AND LEGAL CONTENT: ~~ LEASE BY AND BETWEEN (Lessor) AND MARUKO INC., a Japan corporation (Lessee) fXHlBll it LEASE SUMMARY OF BASIC TERMS Lessor's Name and Address: Lessee's Name and Address: Maruko Inc., a corporation duly organized and existing under the laws of Japan. MG, I nc . 13-8, Chuo l-chome Nakano-ku, Tokyo Japan Commencement Date: Term: Six (6) years, with two 6-year options to extend , Years 1-6 , Years 7-12 , Years 13-18 Rent: u.s. $ U.S. $ U.S. $ Operation Deposit: Yen Initial Maintenance Fee: $ Remittance Agent in Japan: MG, Inc. 13-8, Chuo l-chome Nakano-ku, Tokyo Japan EXHIBlI A LEASE This Lease ("Lease") 1988, by and between sor") and Maruko, Inc., under the laws of Japan is entered into as of -' (the "Les- a corporation duly organized and existing (the "Lessee"). RECITALS A. Lessor has purchased from Lessee a / th undivided tenant-in-common interest (defined for the purposes of this Lease as a "Leased Unit") in that certain real property in San Bernardino, California (the "Property"), which has been improved with a hotel and related facilities (the "Hotel") com- monly known as the Maruko Hotel and Convention Center. The Prop- erty and the Hotel (collectively, the "Project") are subject to (i) that certain Cotenancy Agreement dated as of , 1988 (the "Agreement") and (ii) that certain Owner Participation and Development Agreement (the "Development Agreement") by and among Lessee, the City of San Bernardino, a municipal corporation - (the "City"), and the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Agency"). Except as otherwise defined herein or where the con- text requires otherwise, all capitalized terms in this Lease shall have the meaning assigned to them in the Agreement. B. The Lessor desires to lease the Leased unit to the Les- see, and the Lessee desires to lease the Leased Unit from the Lessor, for the use of the Leased Unit in connection with the operation of the Project as a hotel with related commercial facilities, on the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the covenants and agree- ments contained herein, Lessor hereby leases the Leased Unit to Lessee, and Lessee hereby leases the Leased Unit from Lessor, upon the following terms and conditions: ARTICLE 1 TERM Section 1.1. Term. The initial term of this Lease shall be for a period of six (6) years, subject to extension in accordance with Section 1.2 below, commencing on the date Lessor pays to -1-(RE:763080l8LR.Ol) EXH1B" ,t A Lessee the final installment of the purchase price for the Leased Unit and Lessee has transferred title to the Leased Unit to Les- sor. Section 1.2. Extensions of Term. The term of this Lease shall be automatically extended for two (2) additional six (6) year periods upon the same terms and conditions and at the same rent as set forth herein unless Lessee delivers written notice to the Lessor prior to the commencement of either extension period stating that the term of the Lease shall not be so extended. ARTICLE 2 RENT Section 2.1. Rent. During the term of this Lease, Lessee shall pay to Lessor a monthly rental (the "Rent") equal to the following, subject to the offsets in Section 2.3, and prorated for any partial month: (a) U.S. S per month during the first SIX years of the term of this Lease; ( b) U.S. S per month during the second six years of the term of this Lease; and (c) U.S. S during the third six years of the term of this Lease. Section 2.2. Payment of Rent. Lessee shall pay the Rent in equal monthly installments, prorated for any partial month, pay- able commencing on the date hereof and on the fifth day of each calendar month thereafter (provided that if the fifth day of a month falls on a Sunday or holiday, payment shall be made on the next day). As the monthly Rent actually received may fluctuate in terms of yen according to the prevailing exchange rate, the conversion from U.S. dollars to yen shall be based on the TTB exchange rate as of the twenty-fifth day of the previous month. All remittance charges shall be for the account of Lessor. Nei- ther party hereto shall have any right to claim an increase in or reduction of the monthly Rent while this Lease remains in eff~ct; however, in the event of material changes in the economic envi- ronment or other similar conditions after the execution of this Lease, the Rent may be adjusted at the sole discretion of Lessee. Section 2.3. Fees. MG, Inc., with offices at 13-8, Chuo l-chome, Nakana-ku, Tokyo, Japan, shall assist Lessee in domestic remittance and Maruko USA, Inc., with offices at 9 East 45th -2-(RE:76308018LR.Ol) EXHIBIl A Street, New York, New York, 10017, U.S.A., shall assist Lessee in the operation of the Leased unit; in connection with such ser- vices, Lessor shall pay to Lessee an agency fee in the amount of ten percent (10%) of the monthly Rent, which shall be deducted by Lessee from the monthly Rent at the time of remittance at the prevailing TTB rate. In addition, Lessor shall pay to Lessee a maintenance fee of U.S. $ per month (the "Maintenance Fee") which shall be deducted from the monthly remittance of Rent by Lessee, who shall submit a statement of account to Lessor annually. The Maintenance Fee may be increased or decreased as a result of changes in the Consumer Price Index, all items 1967=100, Los Angeles-Anaheim-Riverside, California, Metropolitan Area, for all Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics, or changes in the economic environment or for other such similar reason. ARTICLE 3 OPERATION DEPOSIT Immediately upon the execution of this Lease, Lessor shall deliver to Lessee, as a non-refundable deposit, Yen in immediately available funds (the "Operation Deposit"). The Operation Deposit shall be applied by Lessee from time to time and as Lessee deems necessary in its sole discretion toward the repair and replacement of the structural components of the Proj- ect including, but not limited to, wall coverings and carpets. Lessee may commingle the Operation Deposit with Lessee's other funds. Lessee shall not be required to pay Lessor interest on the Operation Deposit. ARTICLE 4 USE Section 4.1. Use of Premises. Lessee may use the Leased Unit for any of the purposes set forth in the Agreement with respect thereto. Lessee shall have the right to enter into a contract with a professional management or operating company (the "Operator") with respect to the Leased Unit and all or a portion of the Project for the operation of a hotel and related facili- ties thereon, and Lessee shall be entitled to delegate any of its duties or assign any of its rights hereunder to such Operator. Lessee shall use its best efforts to maintain and enhance the utilization of the Premises. -3-(RE:763080l8LR.Ol) f.XHiBl [ A Section 4.2. Name. Lessee may operate the project under any name as determined by Lessee in its sole discretion. ARTICLE 5 MAINTENANCE Lessee shall maintain and repair the Leased Unit in good condition and repair during the term of this Lease. In the event of any damage or destruction to the project which the Association is not required to repair under the Agreement, Lessee may termi- nate this Lease. ARTICLE 6 COMPLIANCE WITH AND ASSIGNMENT OF GOVERNING DOCUMENTS Section 6.1. Lessor's Compliance With Governinq Documents. Lessor shall at all times comply with all the terms and provi- sions of the Agreement and the other Governing Documents applica- ble to Lessor, including, without limitation, (a) the payment of any and all assessments that may be payable with respect to the Leased Unit which assessments shall include charges for fire, casualty and liability insurance, and (b) delivery of notice to the Association of the execution of this Lease and of Lessee's name and address in accordance of Section 7.2 of the Agreement. Section 6.2. Assiqnment of Governinq Documents. Lessor acknowledges and agrees that Lessee, in accordance with the terms of the Agreement shall upon the effective date of this Lease become a Member of the Association in lieu of Lessor and that Lessee shall have all rights appurtenant to such membership including, without limitation, all voting rights in the Associa- tion. Without limiting the foregoing, Lessor hereby assigns to Lessee for the term of this Lease all rights and benefits of Les- sor under the Agreement and the other Governing Documents. ARTICLE 7 COMPLIANCE WITH DEVELOPMENT AGREEMENT For so long as this Lease remains in effect, Lessee agrees to assume and to comply with all the terms and obligations of the Development Agreement applicable to an owner of an interest in -4-(RE:76308018LR.OI) f)(hIBII A the Project; provided, however, that Lessor shall not perform any act in violation of the Development Agreement, and specifically, without limiting the generality of the foregoing, Lessor shall not transfer any interest in the Leased Unit without obtaining the consent of the Agency and the City in accordance with the Development Agreement. Lessor hereby assigns all its right, title and interest in the Development Agreement to Lessee and appoints Lessee as its lawful attorney-in-fact for so long as this Lease remains in effect to enforce the terms and provisions of the Development Agreement, which power shall be coupled with an interest and irrevocable. In the event of any termination of the Development Agreement, Lessee may terminate this Lease. ARTICLE 8 TAXES Section 8.1. Payment of Taxes on Leased Unit. Lessor shall pay all real property taxes assessed against the Leased Unit or any portion thereof; provided, however, that Lessee shall pay all taxes, assessments or impositions which may be levied on Lessee's_ possessory interest in the Leased Unit. Section 8.2. Other Taxes. Lessee shall be responsible for all sales taxes, excise taxes, inventory taxes and occupancy taxes and any other taxes and impositions with respect to the Lessee's operations of the Project as a hotel. In addition, Les- see shall be responsible for any business license tax with respect to the business conducted by Lessee at the Leased Unit. Section 8.3. Riqht to Contest. Either party, at such party's sole expense, may contest the amount or legality of any taxes payable by such party in accordance herewith if the con- testing party determines in good faith and with reasonable belief that such taxes or assessments are improper or excessive, and the non-contesting party shall reasonably cooperate with the con- testing party in connection therewith. ARTICLE 9 RIGHT OF FIRST REFUSAL Should Lessor, during the term of this Lease or any exten- sion thereof, elect to sell all or a portion of the Leased Unit, Lessee shall have the right of first refusal to meet any bona fide purchase offer on the same terms and conditions of such -5-(RE:76308018LR.OI) EXH1BJI A offer: provided, however, that if the proposed purchase or trans- fer is to occur during the first three (3) years of the term of this Lease to a resident, citizen or domiciliary of the united States, then the provisions of Section 10.1 below shall apply to such proposed sale or transfer in lieu of this Article 9. Should Lessor receive such an offer, Lessor shall send to Lessee a copy of such offer, and, if during the first three (3) years of the term hereof, a certification to Lessee that such offeror is not a resident, citizen or domiciliary of the United States (the "Offer Notice"), at least three (3) months prior to the intended time of transfer. Lessee shall have fourteen (14) days from the date Lessee receives the Offer Notice from Lessor to elect to either exercise such right of first refusal or to permit Lessor to transfer the Leased Unit to such purchaser in accordance with such purchase offer. The terms of this Lease, including, without limitation, the Lessee's right of first refusal, shall be appli- cable to Lessor and all subsequent owners of the Leased unit and to each and every sale of the Leased Unit. Lessor shall cause the party to whom ownership of the Leased Unit is being trans- ferred to expressly assume all of Lessor's obligations under this Lease and all other rules and regulations relative to this Lease and all other rules and regulations relative to this Lease drawn up or instituted by Lessor and Lessee and to abide by all the terms of this Lease including, without limitation, Lessee's right of first refusal. In the event that Lessee does not exercise its right of first refusal with respect to any purchaser offer and if the Lessor fails to transfer the Leased Unit in accordance with such purchase offer, the Lessee's right of first refusal shall be applicable to all subsequent purchase offers. In the event Les- sor fails to comply with each and every term of this Article 9 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. ARTICLE 10 LESSEE'S REPURCHASE OF PREMISES Section 10.1. Repurchase Durinq First Three Years. In the event that Lessor desires to sell or transfer all or a portion of the Leased Unit during the first three (3) years of the term of this Lease to any resident, citizen or domiciliary of the united States, Lessor shall send to Lessee a notice (the "Repurchase Notice") at least three (3) months prior to the intended time of transfer, setting forth the terms of such proposed sale or trans- fer, and certifying to Lessee that such purchaser or transferee is a resident, citizen or domiciliary of the United States. Pro- vided that Lessee determines that the proposed purchaser or transferee is a resident, citizen or domiciliary of the United -6-(RE:76308018LR.Ol) .EXHH:HI A States, and provided that Lessee determines that the proposed purchase or transfer is pursuant to a bona fide purchase offer from an unrelated party negotiated at arms length, then Lessee agrees to purchase the Leased Unit from Lessor, and Lessor agrees to sell the Leased Unit to Lessee, on the same terms and condi- tions set forth in the Repurchase Notice. In the event Lessor fails to comply with each and every term of this Section 10.1 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. Section 10.2. Repurchase Upon Termination of Lease. As of the expiration (if this Lease is not renewed within fifteen (15) days of such expiration) or earlier termination of this Lease, Lessor agrees to sell, and Lessee agrees to buy, the Leased Unit at a purchase price equal to an amount to be agreed upon by Les- sor and Lessee or, in the event Lessor and Lessee cannot agree to a purchase price within thirty (30) days after written notice by Lessor to Lessee of Lessor's intention to repurchase the Leased Unit, Lessor shall purchase the Leased Unit at a purchase price equal to its then "Fair Market Value." For the purposes of this Lease, "Fair Market Value" shall be calculated as follows: In the event that an appraisal of the Fair Market Value of the Leased Unit is required pursuant to this Section 10.2, the Lessor shall, by notice to the Lessee, appoint an appraiser. Within twenty (20) days thereafter the Lessee may, by written notice to the Lessor, appoint another appraiser as a second appraiser. The appraisers thus appointed shall appoint a third appraiser and such three appraisers shall as promptly as possible determine the Fair Market Value of the Leased unit; provided, however, that: (A) If the second appraiser shall not have been appointed within the twenty (20) day period set forth above, the first appraiser shall proceed to determine such value; and (B) If, within fifteen (15) days after the appointment of the second appraiser, the two appraisers appointed by the par- ties shall be unable to agree upon the appointment of a third appraiser, they shall give written notice of such failure to agree to the Lessor and Lessee, and, if the Lessor and Lessee fail to agree upon the selection of such third appraiser within fifteen (15) days after the appraisers appointed by the Lessor and Lessee give notice as aforesaid, then within fifteen (15) days thereafter either of the parties upon written notice to the other party hereto may apply for such appointment to the Superior Court for the county where the Leased Unit is located or to any other court having jurisdiction and exercising functions similar to those now exercised by the Superior Court for the county where the Leased Unit is located. -7-(RE:76308018LR.Ol) EXHiB/I A As used in this Section 10.2, the term "Fair Market Value" of the Leased Unit shall mean the cash price which a sophisti- cated purchaser would pay for the Leased Unit subject to existing encumbrances affecting all interests in the Property (as opposed to encumbrances affecting only the interests of Lessee individu- ally). The determination of the majority of the appraisers or of the sole appraiser, as the case may be, shall be conclusive upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The appraisers shall give written notice to the parties stating their determination, and shall furnish to each party a copy of such determination signed by them. Each party shall pay the fees and expenses of the appraiser selected by such party, and the fees and expenses of the third appraiser shall be shared equally by both parties. In the event of the failure, refusal or inability of any appraiser to act, a new appraiser shall be appointed in his stead, which appointment shall be made in the same manner as hereinbefore pro- vided for the appointment of the appraiser so failing, refusing or unable to act. Each appraiser shall be a member of the Ameri- can Institute of Real Estate Appraisers and shall have not less than ten (10) years experience in the appraisal of commercial property in the county where the Leased Unit is located. The closing (the "Close of Escrow") of any purchase and sale pur- suant to this Section 10.2 shall occur, pursuant to an escrow opened by the parties, on the thirtieth day following the later to occur of (i) the expiration or prior termination of this Lease or (ii) the determination by the appraisers of the Fair Market Value of the Leased Unit, provided that if such thirtieth day is not a business day, the Close of Escrow shall occur on the first business day occurring thereafter. The Repurchase Price shall be payable at the Close of Escrow upon such terms and conditions as the parties may agree, and Lessor shall deliver title to the Leased Unit to Lessee at Close of Escrow subject only to matters of record as of the commencement of the term hereof, and any mat- ters created by Lessee. This Section 10.2 shall survive the expiration or termination of this Lease. ARTICLE 11 WAIVER OF PARTITION During the term of this Lease, Lessor, for itself and its heirs, successors and assigns, hereby expressly waives and relin- quishes any right to partition the Project whether in kind or by sale, at law or in equity, including, without limitation, pursu- ant to Sections 872.010 to 874.240 of the Code of Civil Procedure of the State of California as well as any other statutes or common law principles of similar effect. -8-(RE:763080l8LR.Ol) EXiilDLL A ARTICLE 12 RI GlIT TO CURE Neither party shall be deemed to be in default hereunder unless such party fails to perform any of the terms, conditions and covenants of this Lease to be observed or performed by such party, and such failure has not been cured within a period of thirty (30) days after the defaulting party receives written notice from the other party of such default (unless the cure of such default reasonably requires more than thirty (30) days to cure, in which event the defaulting party shall have such addi- tional time as is reasonably necessary to effect such cure so long as the defaulting party commences the cure of such default within the 30-day period and thereafter diligently pursues such cure to completion). Neither of the parties hereto may terminate this Lease while this Lease remains in effect, except as permit- ted hereunder or under applicable law. If any discrepancy and/or obscurity arises in relation to the interpretation or imple- mentation of this Lease, all relevant laws, regulations and cus- toms shall be observed and the parties hereto shall endeavor to resolve the matter amicably. ARTICLE 13 GENERAL PROVISIONS Section 13.1. Governinq Law. This Lease and the perfor- mance thereof shall be governed, interpreted, construed and regu- lated by the laws of California. Section 13.2. Notices. Any notice required to be gIven by either party to the other party under this Lease shall be in writing and personally delivered or given by certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below, subject to the right of either party to designate a different address for itself by notice similarly given: (a) Lessor: (b) Lessee: Maruko Inc. 13-8, Chuo l-chome Nakano-ku, Tokyo Japan -9-(RE:76308018LR.Ol) [XlllDlt A Any notice so given shall be deemed given on the date of actual delivery which may be evidenced by a signed receipt if by profes- sional delivery service or by addressee's registry or certifica- tion receipt if by registered or certified mail. Section 13.3. Entire Aqreement: Modification in Writinq. This Lease contains the entire agreement of the parties hereto with respect to the matters covered hereby, and no other agree- ment, statement or promise made by any party hereto, or by any employee, officer or agent of any party hereto which is not contained herein shall be binding or valid. This Lease shall not be modified or cancelled except by writing subscribed by both parties. Section 13.4. Successors and Assiqns. This Lease shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. Section 13.5. Memorandum. Upon Lessee's request, Lessor shall execute a memorandum of this Lease, Lessee's right of first refusal in Article 9 and/or Lessee's repurchase obligation in Article 10, in a form acceptable to Lessee, which Lessee may record in the office of the County Recorder of San Bernardino County, California. IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the date first above written. "LESSOR" "LESSEE" MARUKO INC. By: Its: -10-(RE:76308018LR.Ol) EXhwi t A 1 2 3 4 5 6 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LETTER TO MARUKO, INC. PURSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLLOWS: SECTION 1. The Mayor is hereby authorized and directed to 7 execute on behalf of said City a letter to Maruko, Inc. relating 8 to Owner Participation and Development Agreement, which letter is 9 attached hereto as Exhibit "1", and incorporated herein by 10 11 12 13 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 14 the day of , 1988, by the following 15 vote, to wit: 16 17 18 19 20 21 22 23 24 25 26 27 28 Council Members AYES: NAYS: ABSENT: City Clerk DAB:cez 9/15/88 1 "A If 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 day of , 1988. Evlyn Wilcox, Mayor City of San Bernardino Approved as to form and legal content: DAB:cez 9/14/88 2 CI BERNARDINO 300 NORTH "0" STREET, SAN BERNARDINO, CALIFORNIA 92418 JAMES F. PENMAN CITY ATTORNEY (714) 384-5355 September 13, 1988 Maruko, Inc. c/o KOAR, Inc. 555 S. Flower Street Los Angeles, CA 90071 Re: Owner Participation and Development Agreement by and among the City of San Bernardino, the Redevelopment Agency of the City of Bernardino, and Maruko, Inc., dated July 20, 1987 (the "Agreement") Gentlemen: This letter shall constitute the approval by the undersigned to the transfer by Maruko, Inc., a Japanese corporation, of undivided interests as tenants in common (the "Interests") in the "Project" (as defined in the Agreement) as hereinafter described. The interests shall be conveyed to purchasers who shall each immediately enter into a lease of each such purchaser's Interest with Maruko, Inc. Pursuant to such Leases, Maruko, Inc. shall agree to assume and perform all the obligations of the "Redeveloper" under the Agreement during the term of such leases, and Maruko, Inc. shall re-acquire such Interests either during the term of such leases under certain conditions or upon the expiration or termination of such leases. This letter shall constitute the approval by the undersigned to the above-described transfers from Maruko, Inc., to, such purchasers and from such purchasers to Maruko, Inc. as required by Section 6.5 of the Agreement, and any and all other documents executed and delivered in connection with the Agreement or with respect to the Project or the "Convention Center" (as defined in the Agreement). The undersigned does hereby approve the form of such leases as shown on Exhibit "A" attached hereto and incorporated herein. Should such leases be changed in form or content, further approval shall be required. ~l 'j,-...f ;~\>_.~I ~.'.~.~_~~~',;..t't:,.j:'f . .;p;' :"<,,=.," , ";CC-3 txHIBll I .. Maruko, Inc. September 13, 1988 Page 2 The undersigned hereby waive the provisions of Section 6.5(e) of the Agreement with respect to the foregoing assignments and acknowledge that no transfers of the "Operating Agreement" (as defined in the Agreement) shall be made in conjunction with the foregoing transfers. Very truly yours, THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Mayor APPROVED AS TO FORM AND LEGAL CONTENT: THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Chairman APPROVED AS TO FORM AND LEGAL CONTENT: ~~ EXHIBIT I . LEASE BY AND BETWEEN (Lessor) AND MARUKO INC., a Japan corporation (Lessee) .EXHIBJI A LEASE SUMMARY OF BAS I C TERMS Lessor's Name and Address: Lessee's Name and Address: Maruko Inc., a corporation duly organized and existing under the laws of Japan. MG, Inc. 13-8, Chuo 1-chome Nakano-ku, Tokyo Japan Commencement Date: Term: Six (6) years, with two 6-year options to extend Rent: U.S. S U.S. S U.S. S , Years 1-6 , Years 7-12 , Years 13-18 Operation Deposit: Yen Initial Maintenance Fee: s Remittance Agent in Japan: MG, Inc. 13-8, Chuo 1-chome Nakano-ku, Tokyo Japan EXHIBll A LEASE This Lease ("Lease") 1988, by and between sor") and Maruko, Inc., under the laws of Japan is entered into as of -' (the "Les- a corporation duly organized and existing (the "Lessee"). RECITALS A. Lessor has purchased from Lessee a / th undivided tenant-in-common interest (defined for the purposes of this Lease as a "Leased Unit") in that certain real property in San Bernardino, California (the "Property"), which has been improved with a hotel and related facilities (the "Hotel") com- monly known as the Maruko Hotel and Convention Center. The Prop- erty and the Hotel (collectively, the "Project") are subject to (i) that certain Cotenancy Agreement dated as of , 1988 (the "Agreement") and (ii) that certain Owner Participation and Development Agreement (the "Development Agreement") by and among Lessee, the City of San Bernardino, a municipal corporation (the "City"), and the Redevelopment Agency of the City of San Bernar~ino, a public body corporate and politic (the "Agency"). Except as otherwise defined herein or where the con- text requires otherwise, all capitalized terms in this Lease shall have the meaning assigned to them in the Agreement. B. The Lessor desires to lease the Leased Unit to the Les- see, and the Lessee desires to lease the Leased Unit from the Lessor, for the use of the Leased Unit in connection with the operation of the Project as a hotel with related commercial facilities, on the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the covenants and agree- ments contained herein, Lessor hereby leases the Leased Unit to Lessee, and Lessee hereby leases the Leased Unit from Lessor, upon the following terms and conditions: ARTICLE 1 TERM Section 1.1. Term. The initial term of this Lease shall be for a period of six (6) years, subject to extension in accordance with Section 1.2 below, commencing on the date Lessor pays to -1-(RE:76308018LR.Ol) EMIIDl r A Lessee the final installment of the purchase price for the Leased Unit and Lessee has transferred title to the Leased Unit to Les- sor. Section 1.2. Extensions of Term. The term of this Lease shall be automatically extended for two (2) additional six (6) year periods upon the same terms and conditions and at the same rent as set forth herein unless Lessee delivers written notice to the Lessor prior to the commencement of either extension period stating that the term of the Lease shall not be so extended. ARTICLE 2 RENT Section 2.1. Rent. During the term of this Lease, Lessee shall pay to Lessor a monthly rental (the "Rent") equal to the following, subject to the offsets in Section 2.3, and prorated for any partial month: (a) U.S. S per month during the first six years of the term of this Lease; .( b) U.S. S per month during the second SlX years of the term of this Lease; and (c) U.S. S during the third six years of the term of this Lease. Section 2.2. Payment of Rent. Lessee shall pay the Rent in equal monthly installments, prorated for any partial month, pay- able commencing on the date hereof and on the fifth day of each calendar month thereafter (provided that if the fifth day of a month falls on a Sunday or holiday, payment shall be made on the next day). As the monthly Rent actually received may fluctuate in terms of yen according to the prevailing exchange rate, the conversion from U.S. dollars to yen shall be based on the TTB exchange rate as of the twenty-fifth day of the previous month. All remittance charges shall be for the account of Lessor. Nei- ther party hereto shall have any right to claim an increase in or reduction of the monthly Rent while this Lease remains in effect; however, in the event of material changes in the economic envi- ronment or other similar conditions after the execution of this Lease, the Rent may be adjusted at the sole discretion of Lessee. Section 2.3. Fees. MG, Inc., with offices at 13-8, Chuo l-chome, Nakana-ku, Tokyo, Japan, shall assist Lessee in domestic remittance and Maruko USA, Inc., with offices at 9 East 45th -2-(RE:76308018LR.OI) EMildl f. A Street, New York, New York, 10017, U.S.A., shall assist Lessee in the operation of the Leased unit: in connection with such ser- vices, Lessor shall pay to Lessee an agency fee in the amount of ten percent (10%) of the monthly Rent, which shall be deducted by Lessee from the monthly Rent at the time of remittance at the prevailing TTB rate. In addition, Lessor shall pay to Lessee a maintenance fee of U.S. S per month (the "Maintenance Fee") which shall be deducted from the monthly remittance of Rent by Lessee, who shall submit a statement of account to Lessor annually. The Maintenance Fee may be increased or decreased as a result of changes in the Consumer Price Index, all items 1967=100, Los Angeles-Anaheim-Riverside, California, Metropolitan Area, for all Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics, or changes in the economic environment or for other such similar reason. ARTICLE 3 OPERATION DEPOSIT Immediately upon the execution of this Lease, Lessor shall deliver to Lessee, as a non-refundable deposit, Yen in immediately available funds (the "Operation Deposit"). The Operation Deposit shall be applied by Lessee from time to time and as Lessee deems necessary in its sole discretion toward the repair and replacement of the structural components of the Proj- ect including, but not limited to, wall coverings and carpets. Lessee may commingle the Operation Deposit with Lessee's other funds. Lessee shall not be required to pay Lessor interest on the Operation Deposit. ARTICLE 4 USE Section 4.1. Use of Premises. Lessee may use the Leased Unit for any of the purposes set forth in the Agreement with respect thereto. Lessee shall have the right to enter into a contract with a professional management or operating company (the "Operator") with respect to the Leased Unit and all or a portion of the Project for the operation of a hotel and related facili- ties thereon, and Lessee shall be entitled to delegate any of its duties or assign any of its rights hereunder to such Operator. Lessee shall use its best efforts to maintain and enhance the utilization of the Premises. -3-(RE:76308018LR.Ol) EXHiC;jJ It Section 4.2. Name. Lessee may operate the Project under any name as determined by Lessee in its sole discretion. ARTICLE 5 MAINTENANCE Lessee shall maintain and repair the Leased Unit in good condition and repair during the term of this Lease. In the event of any damage or destruction to the Project which the Association is not required to repair under the Agreement, Lessee may termi- nate this Lease. ARTICLE 6 COMPLIANCE WITH AND ASSIGNMENT OF GOVERNING DOCUMENTS Section 6.1. Lessor's Compliance With Governinq Documents. Lessor shall at all times comply with all the terms and provi- sions of the Agreement and the other Governing Documents applica- . ble to Lessor, including, without limitation, (a) the payment of any and all assessments that may be payable with respect to the Leased Uni~ which assessments shall include charges for fire, casualty and liability insurance, and (b) delivery of notice to the Association of the execution of this Lease and of Lessee's name and address in accordance of Section 7.2 of the Agreement. Section 6.2. Assiqnment of Governinor Documents. Lessor acknowledges and agrees that Lessee, in accordance with the terms of the Agreement shall upon the effective date of this Lease become a Member of the Association in lieu of Lessor and that Lessee shall have all rights appurtenant to such membership including, without limitation, all voting rights in the Associa- tion. Without limiting the foregoing, Lessor hereby assigns to Lessee for the term of this Lease all rights and benefits of Les- sor under the Agreement and the other GovE!rning Documents. ARTICLE 7 COMPLIANCE WITH DEVELOPMENT AGREEMENT For so long as this Lease remains in effect, Lessee agrees to assume and to comply with all the terms and obligations of the Development Agreement applicable to an owner of an interest in -4-(RE:76308018LR.Ol) tAl il..;/l ~ the Project; provided, however, that Lessor shall not perform any act in violation of the Development Agreement, and specifically, without limiting the generality of the foregoing, Lessor shall not transfer any interest in the Leased Unit without obtaining the consent of the Agency and the City in accordance with the Development Agreement. Lessor hereby assigns all its right, title and interest in the Development Agreement to Lessee and appoints Lessee as its lawful attorney-in-fact for so long as this Lease remains in effect to enforce the terms and provisions of the Development Agreement, which power shall be coupled with an interest and irrevocable. In the event of any termination of the Development Agreement, Lessee may terminate this Lease. ARTICLE 8 TAXES Section 8.1. Payment of Taxes on Leased Unit. Lessor shall pay all real property taxes assessed against the Leased Unit or any portion thereof; provided, however, that Lessee shall pay all taxes, assessments or impositions which may be levied on Lessee's possessory interest in the Leased Unit. Sectipn 8.2. Other Taxes. Lessee shall be responsible for all sales taxes, excise taxes, inventory taxes and occupancy taxes and any other taxes and impositions with respect to the Lessee's operations of the Project as a hotel. In addition, Les- see shall be responsible for any business license tax with respect to the business conducted by Lessee at the Leased Unit. Section 8.3. Riqht to Contest. Either party, at such party's sole expense, may contest the amount or legality of any taxes payable by such party in accordance herewith if the con- testing party determines in good faith and with reasonable belief that such taxes or assessments are improper or excessive, and the non-contesting party shall reasonably cooperate with the con- testing party in connection therewith. ARTICLE 9 RIGHT OF FIRST REFUSAL Should Lessor, during the term of this Lease or any exten- sion thereof, elect to sell all or a portion of the Leased Unit, Lessee shall have the right of first refusal to meet any bona fide purchase offer on the same terms and conditions of such -5-(RE:76308018LR.Ol) LAlllJd A offer; provided, however, that if the proposed purchase or trans- fer is to occur during the first three (3) years of the term of this Lease to a resident, citizen or domiciliary of the United States, then the provisions of Section 10.1 below shall apply to such proposed sale or transfer in lieu of this Article 9. Should Lessor receive such an offer, Lessor shall send to Lessee a copy of such offer, and, if during the first three (3) years of the term hereof, a certification to Lessee that such offeror is not a resident, citizen or domiciliary of the United States (the "Offer Notice"), at least three (3) months prior to the intended time of transfer. Lessee shall have fourteen (14) days from the date Lessee receives the Offer Notice from Lessor to elect to either exercise such right of first refusal or to permit Lessor to transfer the Leased Unit to such purchaser in accordance with such purchase offer. The terms of this Lease, including, without limitation, the Lessee's right of first refusal, shall be appli- cable to Lessor and all subsequent owners of the Leased Unit and to each and every sale of the Leased Unit. Lessor shall cause the party to whom ownership of the Leased Unit is being trans- ferred to expressly assume all of Lessor's obligations under this Lease and all other rules and regulations relative to this Lease and all other rules and regulations relative to this Lease drawn up or instituted by Lessor and Lessee and to abide by all the terms of this Lease including, without limitation, Lessee's right of first refusal. In the event that Lessee does not exercise its right of first refusal with respect to any purchaser offer and if the Lessor fails to transfer the Leased Unit in accordance with such purchase offer, the Lessee's right of first refusal shall be applicable to all subsequent purchase offers. In the event Les- sor fails to comply with each and every term of this Article 9 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. ARTICLE 10 LESSEE'S REPURCHASE OF PREMISES Section 10.1. Repurchase Durinq First Three Years. In the event that Lessor desires to sell or transfer all or a portion of the Leased Unit during the first three (3) years of the term of this Lease to any resident, citizen or domiciliary of the United States, Lessor shall send to Lessee a notice (the "Repurchase Notice") at least three (3) months prior to the intended time of transfer, setting forth the terms of such proposed sale or trans- fer, and certifying to Lessee that such purchaser or transferee is a resident, citizen or domiciliary of the United States. Pro- vided that Lessee determines that the proposed purchaser or transferee is a resident, citizen or domiciliary of the United -6-(RE:763080l8LR.Ol) L\ild..i!f A States, and provided that Lessee determines that the proposed purchase or transfer is pursuant to a bona fide purchase offer from an unrelated party negotiated at arms length, then Lessee agrees to purchase the Leased Unit from Lessor, and Lessor agrees to sell the Leased Unit to Lessee, on the same terms and condi- tions set forth in the Repurchase Notice. In the event Lessor fails to comply with each and every term of this Section 10.1 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. Section 10.2. Repurchase Upon Termination of Lease. As of the expiration (if this Lease is not renewed within fifteen (15) days of such expiration) or earlier termination of this Lease, Lessor agrees to sell, and Lessee agrees to buy, the Leased Unit at a purchase price equal to an amount to be agreed upon by Les- sor and Lessee or, in the event Lessor and Lessee cannot agree to a purchase price within thirty (30) days after written notice by Lessor to Lessee of Lessor's intention to repurchase the Leased Unit, Lessor shall purchase the Leased Unit at a purchase price equal to its then "Fair Market Value." For the purposes of this Lease, "Fair Market Value" shall be calculated as follows: In the event that an appraisal of the Fair Market Value of the Leased Unit is required pursuant to this Section 10.2, the Lessor shall, by notice to the Lessee, appoint an appraiser. Within twenty (20) days thereafter the Lessee may, by written notice to the Lessor, appoint another appraiser as a second appraiser. The appraisers thus appointed shall appoint a third appraiser and such three appraisers shall as promptly as possible determine the Fair Market Value of the Leased Unit; provided, however, that: (A) If the second appraiser shall not have been appointed within the twenty (20) day period set forth above, the first appraiser shall proceed to determine such value; and (B) If, within fifteen (15) days after the appointment of the second appraiser, the two appraisers appointed by the par- ties shall be unable to agree upon the appointment of a third appraiser, they shall give written notice of such failure to agree to the Lessor and Lessee, and, if the Lessor and Lessee fail to agree upon the selection of such third appraiser within fifteen (15) days after the appraisers appointed by the Lessor and Lessee give notice as aforesaid, then within fifteen (15) days thereafter either of the parties upon written notice to the other party hereto may apply for such appointment to the Superior Court for the county where the Leased Unit is located or to any other court having jurisdiction and exercising functions similar to those now exercised by the Superior Court for the county where the Leased Unit is located. -7-(RE:7630BOlBLR.Ol) EXHIBiT A As used in this Section 10.2, the term "Fair Market Value" of the Leased Unit shall mean the cash price which a sophisti- cated purchaser would pay for the Leased Unit subject to existing encumbrances affecting all interests in the Property (as opposed to encumbrances affecting only the interests of Lessee individu- ally). The determination of the majority of the appraisers or of the sole appraiser, as the case may be, shall be conclusive upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The appraisers shall give written notice to the parties stating their determination, and shall furnish to each party a copy of such determination signed by them. Each party shall pay the fees and expenses of the appraiser selected by such party, and the fees and expenses of the third appraiser shall be shared equally by both parties. In the event of the failure, refusal or inability of any appraiser to act, a new appraiser shall be appointed in his stead, which appointment shall be made in the same manner as hereinbefore pro- vided for the appointment of the appraiser so failing, refusing or unable to act. Each appraiser shall be a member of the Ameri- can Institute of Real Estate Appraisers and shall have not less than ten (10) years experience in the appraisal of commercial property in the county where the Leased Unit is located. The closing (the "Close of Escrow") of any purchase and sale pur- suant to this Section 10.2 shall occur, pursuant to an escrow opened by ~he parties, on the thirtieth day following the later to occur of (i) the expiration or prior termination of this Lease or (ii) the determination by the appraisers of the Fair Market Value of the Leased Unit, provided that if such thirtieth day is not a business day, the Close of Escrow shall occur on the first business day occurring thereafter. The Repurchase Price shall be payable at the Close of Escrow upon such terms and conditions as the parties may agree, and Lessor shall deliver title to the Leased Unit to Lessee at Close of Escrow subject only to matters of record as of the commencement of the term hereof, and any mat- ters created by Lessee. This Section 10.2 shall survive the expiration or termination of this Lease. ARTICLE 11 WAIVER OF PARTITION During the term of this Lease, Lessor, for itself and its heirs, successors and assigns, hereby expressly waives and relin- quishes any right to partition the Project whether in kind or by sale, at law or in equity, including, without limitation, pursu- ant to Sections 872.010 to 874.240 of the Code of Civil Procedure of the State of California as well as any other statutes or common law principles of similar effect. -8-(RE:76308018LR.Ol) EXhwl] A ARTICLE 12 RI GHT TO CURE Neither party shall be deemed to be in default hereunder unless such party fails to perform any of the terms, conditions and covenants of this Lease to be observed or performed by such party, and such failure has not been cured within a period of thirty (30) days after the defaulting party receives written notice from the other party of such default (unless the cure of such default reasonably requires more than thirty (30) days to cure, in which event the defaulting party shall have such addi- tional time as is reasonably necessary to effect such cure so long as the defaulting party commences the cure of such default within the 30-day period and thereafter diligently pursues such cure to completion). Neither of the parties hereto may terminate this Lease while this Lease remains in effect, except as permit- ted hereunder or under applicable law. If any discrepancy and/or obscurity arises in relation to the interpretation or imple- mentation of this Lease, all relevant laws, regulations and cus- toms shall be observed and the parties hereto shall endeavor to resolve the matter amicably. ARTICLE 13 GENERAL PROVISIONS Section 13.1. Governinq Law. This Lease and the perfor- mance thereof shall be governed, interpreted, construed and regu- lated by the laws of California. Section 13.2. Notices. Any notice required to be given by either party to the other party under this Lease shall be in writing and personally delivered or given by certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below, subject to the right of either party to designate a different address for itself by notice similarly given: (a) Lessor: (b) Lessee: Maruko Inc. 13-8, Chuo l-chorne Nakano-ku, Tokyo Japan -9-(RE:763080l8LR.Ol) EXJ"IiDII ~ Any notice so given shall be deemed given on the date of actual delivery which may be evidenced by a signed receipt if by profes- sional delivery service or by addressee's registry or certifica- tion receipt if by registered or certified mail. Section 13.3. Entire Aqreement: Modification in Writinq. This Lease contains the entire agreement of the parties hereto with respect to the matters covered hereby, and no other agree- ment, statement or promise made by any party hereto, or by any employee, officer or agent of any party hereto which is not contained herein shall be binding or valid. This Lease shall not be modified or cancelled except by writing subscribed by both parties. Section 13.4. Successors and Assiqns. This Lease shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. Section 13.5. Memorandum. Upon Lessee's request, Lessor shall execute a memorandum of this Lease, Lessee's right of first refusal in Article 9 and/or Lessee's repurchase obligation in Article 10, in a form acceptable to Lessee, which Lessee may record in the office of the County Recorder of San Bernardino County, California. IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the date first above written. "LESSOR" "LESSEE" MARUKO INC. By: Its: -10-(RE:76308018LR.Ol) EXhiBiT A 1 2 3 4 5 6 7 8 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LETTER TO MARUKO, INC. PURSUANT TO CERTAIN PROVISIONS OF THE OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Chairman of the Community Development 9 Commission of the City of San Bernardino is hereby authorized 10 and directed to execute for and on behalf of the Redevelopment 11 Agency of the City of San Bernardino a letter to Maruko, Inc. 12 pursuant to certain provisions of the Owner Participation and 13 Development Agreement. A copy of said letter is attached hereto 14 as Exhibit "1" and incorporated herein by reference as though 15 fully set forth at length. 16 17 18 19 20 21 22 23 24 III 25 III 26 III 27 III AYES: Members NAYS: ABSENT or ABSTAIN: Acting Secretary 28 DAB:cez 9/22/88 1 \\~ I' 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 AUTHORIZING AND DIRECTING THE EXECUTION OF A LETTER TO MARUKO, INC. RE: OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT The foregoing resolution is hereby approved this ____ day of , 1988. Chairman Approved as to form and legal content: AGENCY COUNSEL ~ Dennis . Barlow DAB:cez 9/22/88 2 CI BERNARDINO 300 NORTH "0" STREET, SAN BERNARDINO. CALIFORNIA 92418 JAMES F. PENMAN CITY ATTORNEY (714) 384-5355 September 13, 1988 Maruko, Inc. c/o KOAR, Inc. 555 S. Flower Street Los Angeles, CA 90071 Re: Owner Participation and Development Agreement by and among the City of San Bernardino, the Redevelopment Agency of the City of Bernardino, and Maruko, Inc., dated July 20, 1987 (the "Agreement") Gentlemen: This letter shall constitute the approval by the undersigned to the transfer by Maruko, Inc., a Japanese corporation, of undivided interests as tenants in common (the "Interests") in the "Project" (as defined in the Agreement) as hereinafter described. The interests shall be conveyed to purchasers who shall each immediately enter into a lease of each such purchaser's Interest with Maruko, Inc. Pursuant to such Leases, Maruko, Inc. shall agree to assume and perform all the obligations of the "Redeveloper" under the Agreement during the term of such leases, and Maruko, Inc. shall re-acquire such Interests either during the term of such leases under certain conditions or upon the expiration or termination of such leases. This letter shall constitute the approval by the undersigned to the above-described transfers from Maruko, Inc., to such purchasers and from such purchasers to Maruko, Inc. as required by Section 6.5 of the Agreement, and any and all other documents executed and delivered in connection with the Agreement or with respect to the Project or the "Convention Center" (as defined in the Agreement). The undersigned does hereby approve the form of such leases as shown on Exhibit "A" attached hereto and incorporated herein. Should such leases be changed in form or content, further approval shall be required. ,:'"' :i~ '': .,:, '~!f . " .;. ",,-~ ..~..,:f, ~~'~:f..;:;j;.t EXHIBtL I Maruko, Inc. September 13, 1988 Page 2 The undersigned hereby waive the provisions of Section 6.5(e) of the Agreement with respect to the foregoing assignments and acknowledge that no transfers of the "Operating Agreement" (as defined in the Agreement) shall be made in conjunction with the foregoing transfers. Very truly yours, THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Mayor APPROVED AS TO FORM AND LEGAL CONTENT: THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Evlyn Wilcox, Chairman APPROVED AS TO FORM AND LEGAL CONTENT: v~ EXH!8i1 I .. LEASE BY AND BETWEEN (Lessor) AND MARUKO INC., a Japan corporation (Lessee) fXHJBlI I LEASE SUMMARY OF BAS Ie TERMS Lessor's Name and Address: Lessee's Name and Address: Maruko Inc., a corporation duly organized and existing under the laws of Japan. MG, Inc. 13-8, Chuo 1-chome Nakano-ku, Tokyo Japan Commencement Date: Term: Six (6) years, with two 6-year options to extend Rent: u.S. S U.S. S U.S. S , Years 1-6 , Years 7-12 , Years 13-18 Operation Deposit: Initial Maintenance Fee: Yen S Remittance Agent in Japan: MG, Inc. 13-8, Chuo l-chome Nakano-ku, Tokyo Japan EXHIBI1 A LEASE This Lease ("Lease") 1988, by and between sor") and Maruko, Inc., under the laws of Japan is entered into as of -' (the "Les- a corporation duly organized and existing (the "Lessee"). RECITALS A. Lessor has purchased from Lessee a / th undivided tenant-in-common interest (defined for the purposes of this Lease as a "Leased Unit") in that certain real property in San Bernardino, California (the "Property"), which has been improved with a hotel and related facilities (the "Hotel") com- monly known as the Maruko Hotel and Convention Center. The Prop- erty and the Hotel (collectively, the "Project") are subject to (i) that certain Cotenancy Agreement dated as of , 1988 (the "Agreement") and (ii) that certain Owner Participation and Development Agreement (the "Development Agreement") by and among Lessee, the City of San Bernardino, a municipal corporation (the "City"), and the Redevelopment Agency of the City of San Bernarpino, a public body corporate and politic (the "Agency"). Except as otherwise defined herein or where the con- text requires otherwise, all capitalized terms in this Lease shall have the meaning assigned to them in the Agreement. B. The Lessor desires to lease the Leased Unit to the Les- see, and the Lessee desires to lease the Leased Unit from the Lessor, for the use of the Leased Unit in connection with the operation of the Project as a hotel with related commercial facilities, on the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the covenants and agree- ments contained herein, Lessor hereby leases the Leased Unit to Lessee, and Lessee hereby leases the Leased Unit from Lessor, upon the following terms and conditions: ARTICLE 1 TERM Section 1.1. Term. The initial term of this Lease shall be for a period of six (6) years, subject to extension in accordance with Section 1.2 below, commencing on the date Lessor pays to -1-(RE:76308018LR.01) EMildir I Lessee the final installment of the purchase price for the Leased Unit and Lessee has transferred title to the Leased Unit to Les- sor. Section 1.2. Extensions of Term. The term of this Lease shall be automatically extended for two (2) additional six (6) year periods upon the same terms and conditions and at the same rent as set forth herein unless Lessee delivers written notice to the Lessor prior to the commencement of either extension period stating that the term of the Lease shall not be so extended. ARTICLE 2 RENT Section 2.1. Rent. During the term of this Lease, Lessee shall pay to Lessor a monthly rental (the -Rent") equal to the following, subject to the offsets in Section 2.3, and prorated for any partial month: (a) U.S. S per month during the first six years of the term of this Lease; .( b) U.S. S per month during the second six years of the term of this Lease; and (c) U.S. $ during the third six years of the term of this Lease. Section 2.2. Payment of Rent. Lessee shall pay the Rent in equal monthly installments, prorated for any partial month, pay- able commencing on the date hereof and on the fifth day of each calendar month thereafter (provided that if the fifth day of a month falls on a Sunday or holiday, payment shall be made on the next day). As the monthly Rent actually received may fluctuate in terms of yen according to the prevailing exchange rate, the conversion from U.S. dollars to yen shall be based on the TTB exchange rate as of the twenty-fifth day of the previous month. All remittance charges shall be for the account of Lessor. Nei- ther party hereto shall have any right to claim an increase in or reduction of the monthly Rent while this Lease remains in effect: however, in the event of material changes in the economic envi- ronment or other similar conditions after the execution of this Lease, the Rent may be adjusted at the sole discretion of Lessee. Section 2.3. Fees. MG, Inc., with offices at 13-8, Chuo I-chome, Nakana-ku, Tokyo, Japan, shall assist Lessee in domestic remittance and Maruko USA, Inc., with offices at 9 East 45th -2-(RE:763080l8LR.Ol) EAtlldf[ A Street, New York, New York, 10017, U.S.A., shall assist Lessee in the operation of the Leased Unit; in connection with such ser- vices, Lessor shall pay to Lessee an agency fee in the amount of ten percent (10%) of the monthly Rent, which shall be deducted by Lessee from the monthly Rent at the time of remittance at the prevailing TTB rate. In addition, Lessor shall pay to Lessee a maintenance fee of U.S. S per month (the "Maintenance Fee") which shall be deducted from the monthly remittance of Rent by Lessee, who shall submit a statement of account to Lessor annually. The Maintenance Fee may be increased or decreased as a result of changes in the Consumer Price Index, all items 1967=100, Los Angeles-Anaheim-Riverside, California, Metropolitan Area, for all Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics, or changes in the economic environment or for other such similar reason. ARTICLE 3 OPERATION DEPOSIT Immediately upon the execution of this Lease, Lessor shall deliver to Lessee, as a non-refundable deposit, Yen in immediately available funds (the "Operation Deposit"). The Operation Deposit shall be applied by Lessee from time to time and as Lessee deems necessary in its sole discretion toward the repair and replacement of the structural components of the Proj- ect including, but not limited to, wall coverings and carpets. Lessee may commingle the Operation Deposit with Lessee's other funds. Lessee shall not be required to pay Lessor interest on the Operation Deposit. ARTICLE 4 USE Section 4.1. Use of Premises. Lessee may use the Leased Unit for any of the purposes set forth in the Agreement with respect thereto. Lessee shall have the right to enter into a contract wi th a profess ional management or operat ing company ,( the "Operator") with respect to the Leased Unit and all or a portion of the Project for the operation of a hotel and related facili- ties thereon, and Lessee shall be entitled to delegate any of its duties or assign any of its rights hereunder to such Operator. Lessee shall use its best efforts to maintain and enhance the utilization of the Premises. -3-(RE:76308018LR.Ol) EXHIBIT It K Section 4.2. Name. Lessee may operate the Project under any name as determined by Lessee in its sole discretion. ARTICLE 5 MAINTENANCE Lessee shall maintain and repair the Leased Unit in good condition and repair during the term of this Lease. In the event of any damage or destruction to the Project which the Association is not required to repair under the Agreement, Lessee may termi- nate this Lease. ARTICLE 6 COMPLIANCE WITH AND ASSIGNMENT OF GOVERNING DOCUMENTS Section 6.1. Lessor's Compliance With Governinq Documents. Lessor shall at all times comply with all the terms and provi- sions of the Agreement and the other Governing Documents applica- ble to Lessor, including, without limitation, (a) the payment of any and all assessments that may be payable with respect to the Leased Unit which assessments shall include charges for fire, casualty and liability insurance, and (b) delivery of notice to the Association of the execution of this Lease and of Lessee's name and address in accordance of Section 7.2 of the Agreement. Section 6.2. Assiqnment of Governinq Documents. Lessor acknowledges and agrees that Lessee, in accordance with the terms of the Agreement shall upon the effective date of this Lease become a Member of the Association in lieu of Lessor and that Lessee shall have all rights appurtenant to such membership including, without limitation, all voting rights in the Associa- tion. Without limiting the foregoing, Lessor hereby assigns to Lessee for the term of this Lease all rights and benefits of Les- sor under the Agreement and the other Governing Documents. ARTICLE 7 COMPLIANCE WITH DEVELOPMENT AGREEMENT For so long as this Lease remains in effect, Lessee agrees to assume and to comply with all the terms and obligations of the Development Agreement applicable to an owner of an interest in -4-(RE:763080l8LR.OI) t..Atlll.ld It the Project: provided, however, that Lessor shall not perform any act in violation of the Development Agreement, and specifically, without limiting the generality of the foregoing, Lessor shall not transfer any interest in the Leased Unit without obtaining the consent of the Agency and the City in accordance with the Development Agreement. Lessor hereby assigns all its right, title and interest in the Development Agreement to Lessee and appoints Lessee as its lawful attorney-in-fact for so long as this Lease remains in effect to enforce the terms and provisions of the Development Agreement, which power shall be coupled with an interest and irrevocable. In the event of any termination of the Development Agreement, Lessee may terminate this Lease. ARTICLE 8 TAXES Section 8.1. Payment of Taxes on Leased Unit. Lessor shall pay all real property taxes assessed against the Leased Unit or any portion thereof: provided, however, that Lessee shall pay all taxes, assessments or impositions which may be levied on Lessee's possessory interest in the Leased Unit. Sectipn 8.2. Other Taxes. Lessee shall be responsible for all sales taxes, excise taxes, inventory taxes and occupancy taxes and any other taxes and impositions with respect to the Lessee's operations of the Project as a hotel. In addition, Les- see shall be responsible for any business license tax with respect to the business conducted by Lessee at the Leased Unit. Section 8.3. Riqht to Contest. Either party, at such party's sole expense, may contest the amount or legality of any taxes payable by such party in accordance herewith if the con- testing party determines in good faith and with reasonable belief that such taxes or assessments are improper or excessive, and the non-contesting party shall reasonably cooperate with the con- testing party in connection therewith. ARTICLE 9 RIGHT OF FIRST REFUSAL Should Lessor, during the term of this Lease or any exten- sion thereof, elect to sell all or a portion of the Leased Unit, Lessee shall have the right of first refusal to meet any bona fide purchase offer on the same terms and conditions of such -5-(RE:76308018LR.Ol) UlllJd A offer: provided, however, that if the proposed purchase or trans- fer is to occur during the first three (3) years of the term of this Lease to a resident, citizen or domiciliary of the United States, then the provisions of Section 10.1 below shall apply to such proposed sale or transfer in lieu of this Article 9. Should Lessor receive such an offer, Lessor shall send to Lessee a copy of such offer, and, if during the first three (3) years of the term hereof, a certification to Lessee that such offeror is not a resident, citizen or domiciliary of the United States (the "Offer Notice"), at least three (3) months prior to the intended time of transfer. Lessee shall have fourteen (14) days from the date Lessee receives the Offer Notice from Lessor to elect to either exercise such right of first refusal or to permit Lessor to transfer the Leased Unit to such purchaser in accordance with such purchase offer. The terms of this Lease, including, without limitation, the Lessee's right of first refusal, shall be appli- cable to Lessor and all subsequent owners of the Leased Unit and to each and every sale of the Leased Unit. Lessor shall cause the party to whom ownership of the Leased Unit is being trans- ferred to expressly assume all of Lessor's obligations under this Lease and all other rules and regulations relative to this Lease and all other rules and regulations relative to this Lease drawn up or instituted by Lessor and Lessee and to abide by all the terms of this Lease including, without limitation, Lessee's right of first refusal. In the event that Lessee does not exercise its right of first refusal with respect to any purchaser offer and if the Lessor fails to transfer the Leased Unit in accordance with such purchase offer, the Lessee's right of first refusal shall be applicable to all subsequent purchase offers. In the event Les- sor fails to comply with each and every term of this Article 9 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. ARTICLE 10 LESSEE'S REPURCHASE OF PREMISES Section 10.1. Repurchase Durinq First Three Years. In the event that Lessor desires to sell or transfer all or a portion of the Leased Unit during the first three (3) years of the term of this Lease to any resident, citizen or domiciliary of the Uni~ed States, Lessor shall send to Lessee a notice (the "Repurchase Notice") at least three (3) months prior to the intended time of transfer, setting forth the terms of such proposed sale or trans- fer, and certifying to Lessee that such purchaser or transferee is a resident, citizen or domiciliary of the United States. Pro- vided that Lessee determines that the proposed purchaser or transferee is a resident, citizen or domiciliary of the United -6-(RE:76308018LR.Ol) L\IIIDd A States, and provided that Lessee determines that the proposed purchase or transfer is pursuant to a bona fide purchase offer from an unrelated party negotiated at arms length, then Lessee agrees to purchase the Leased Unit from Lessor, and Lessor agrees to sell the Leased Unit to Lessee, on the same terms and condi- tions set forth in the Repurchase Notice. In the event Lessor fails to comply with each and every term of this Section 10.1 in connection with its proposed sale of the Leased Unit, any such sale shall be void and have no force or effect. Section 10.2. Repurchase Upon Termination of Lease. As of the expiration (if this Lease is not renewed within fifteen (15) days of such expiration) or earlier termination of this Lease, Lessor agrees to sell, and Lessee agrees to buy, the Leased Unit at a purchase price equal to an amount to be agreed upon by Les- sor and Lessee or, in the event Lessor and Lessee cannot agree to a purchase price within thirty (30) days after written notice by Lessor to Lessee of Lessor's intention to repurchase the Leased Unit, Lessor shall purchase the Leased Unit at a purchase price equal to its then "Fair Market Value." For the purposes of this Lease, "Fair Market Value" shall be calculated as follows: In the event that an appraisal of the Fair Market Value of the Leased Unit is required pursuant to this Section 10.2, the Lessor shall, by notice to the Lessee, appoint an appraiser. Within twenty (20) days thereafter the Lessee may, by written notice to the Lessor, appoint another appraiser as a second appraiser. The appraisers thus appointed shall appoint a third appraiser and such three appraisers shall as promptly as possible determine the Fair Market Value of the Leased Unit: provided, however, that: (A) If the second appraiser shall not have been appointed within the twenty (20) day period set forth above, the first appraiser shall proceed to determine such value: and (B) If, within fifteen (15) days after the appointment of the second appraiser, the two appraisers appointed by the par- ties shall be unable to agree upon the appointment of a third appraiser, they shall give written notice of such failure to agree to the Lessor and Lessee, and, if the Lessor and Lessee fail to agree upon the selection of such third appraiser within fifteen (15) days after the appraisers appointed by the Lessor and Lessee give notice as aforesaid, then within fifteen (15) days thereafter either of the parties upon written notice to the other party hereto may apply for such appointment to the Superior Court for the county where the Leased Unit is located or to any other court having jurisdiction and exercising functions similar to those now exercised by the Superior Court for the county where the Leased Unit is located. -7-(RE:763080l8LR.Ol) EXHIBIT A As used in this Section 10.2, the term "Fair Market Value" of the Leased Unit shall mean the cash price which a sophisti- cated purchaser would pay for the Leased Unit subject to existing encumbrances affecting all interests in the Property (as opposed to encumbrances affecting only the interests of Lessee individu- ally). The determination of the majority of the appraisers or of the sole appraiser, as the case may be, shall be conclusive upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The appraisers shall give written notice to the parties stating their determination, and shall furnish to each party a copy of such determination signed by them. Each party shall pay the fees and expenses of the appraiser selected by such party, and the fees and expenses of the third appraiser shall be shared equally by both parties. In the event of the failure, refusal or inability of any appraiser to act, a new appraiser shall be appointed in his stead, which appointment shall be made in the same manner as hereinbefore pro- vided for the appointment of the appraiser so failing, refusing or unable to act. Each appraiser shall be a member of the Ameri- can Institute of Real Estate Appraisers and shall have not less than ten (10) years experience in the appraisal of commercial property in the county where the Leased Unit is located. The closing (the "Close of Escrow") of any purchase and sale pur- suant to this Section 10.2 shall occur, pursuant to an escrow opened by ~he parties, on the thirtieth day following the later to occur of (i) the expiration or prior termination of this Lease or (ii) the determination by the appraisers of the Fair Market Value of the Leased Unit, provided that if such thirtieth day is not a business day, the Close of Escrow shall occur on the first business day occurring thereafter. The Repurchase Price shall be payable at the Close of Escrow upon such terms and conditions as the parties may agree, and Lessor shall deliver title to the Leased Unit to Lessee at Close of Escrow subject only to matters of record as of the commencement of the term hereof, and any mat- ters created by Lessee. This Section 10.2 shall survive the expiration or termination of this Lease. ARTICLE 11 WAIVER OF PARTITION During the term of this Lease, Lessor, for itself and its heirs, successors and assigns, hereby expressly waives and relin- quishes any right to partition the Project whether in kind or by sale, at law or in equity, including, without limitation, pursu- ant to Sections 872.010 to 874.240 of the Code of Civil Procedure of the State of California as well as any other statutes or common law principles of similar effect. -8-(RE:76308018LR.Ol) EXt-IIDJl A ARTICLE 12 RI GHT TO CURE Neither party shall be deemed to be in default hereunder unless such party fails to perform any of the terms, conditions and covenants of this Lease to be observed or performed by such party, and such failure has not been cured within a period of thirty (30) days after the defaulting party receives written notice from the other party of such default (unless the cure of such default reasonably requires more than thirty (30) days to cure, in which event the defaulting party shall have such addi- tional time as is reasonably necessary to effect such cure so long as the defaulting party commences the cure of such default within the 30-day period and thereafter diligently pursues such cure to completion). Neither of the parties hereto may terminate this Lease while this Lease remains in effect, except as permit- ted hereunder or under applicable law. If any discrepancy and/or obscurity arises in relation to the interpretation or imple- mentation of this Lease, all relevant laws, regulations and cus- toms shall be observed and the parties hereto shall endeavor to resolve the matter amicably. ARTICLE 13 GENERAL PROVISIONS Section 13.1. Governinq Law. This Lease and the perfor- mance thereof shall be governed, interpreted, construed and regu- lated by the laws of California. Section 13.2. Notices. Any notice required to be given by either party to the other party under this Lease shall be in writing and personally delivered or given by certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below, subject to the right of either party to designate a different address for itself by notice similarly given: (a) Lessor: (b) Lessee: Maruko Inc. 13-8, Chuo l-chorne Nakano-ku, Tokyo Japan -9-(RE:763080l8LR.Ol) E.Xt,lDU ~ Any notice so given shall be deemed given on the date of actual delivery which may be evidenced by a signed receipt if by profes- sional delivery service or by addressee's registry or certifica- tion receipt if by registered or certified mail. Section 13.3. Entire Aqreement: Modification in Writinq. This Lease contains the entire agreement of the parties hereto with respect to the matters covered hereby, and no other agree- ment, statement or promise made by any party hereto, or by any employee, officer or agent of any party hereto which is not contained herein shall be binding or valid. This Lease shall not be modified or cancelled except by writing subscribed by both parties. Section 13.4. Successors and Assiqns. This Lease shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. Section 13.5. Memorandum. Upon Lessee's request, Lessor shall execute a memorandum of this Lease, Lessee's right of first refusal in Article 9 and/or Lessee's repurchase obligation in Article 10, in a form acceptable to Lessee, which Lessee may record in the office of the County Recorder of San Bernardino County, California. IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the date first above written. "LESSOR" "LESSEE" -- MARUKO INC. By: Its: -lO-(RE:76308018LR.Ol) EXh;BiT A REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: YWCA - JOINT PUBLIC HEARING DATE: SEPTEMBER 27, 1988 Synopsis of Previous Commission/Council/Committee Action: 7/10/75 Adopted Resolution #3070 authorizing execution of all documents regarding relocation of 1) County Facilities, 2) YWCA Facilities and 3) SAFECO Title Insurance. Adopted Resolution #3123 authorizing expenditure of funds for the rehab of County Agriculture Bldg. for temporary occupancy of YWCA. Adopted Resolution #4512 to install new roofing Adopted Resolution #4576 to sell building to YWCA Adopted Resolution #4593 to convey adjacent land to State of California. 10/23/75 09/19/83 02/06/84 04/09/84 (continued on page 2) (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: A. Move to authorize Agency staff to obtain an appraisal for the YWCA building's 1976 value from the most timely, qualified low bidder at an amount estimated to be less than $4,500. B. Move to continue the Joint Public Hearing on Monday, November 21, 1988 at 11:00 a.m. (MAYOR AND COMMON COUNCIL) C. Move to continue the Joint Public Heari~ to Monday, November 21, 1988 at 11:00 a.m. / Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: 1st FUNDING REQUIREMENTS: N/A Project: CCE Date: October 3, 1988 Council Notes: Agenda Item No. j?- , 05/09/84 Synopsis of Previous Commission/Council action: (continued from page 1) 03/07/85 09/22/86 10/20/86 10/20/86 02/02/87 02/09/87 02/16/87 10/08/87 10/19/87 10/19/87 11/16/87 01/04/88 02/01/88 03/07/88 04/27/88 08/29/88 Adopted Resolution #84-176 authorizing vacation of Lugo Street adjacent to YWCA Bldg. Adopted Resolution #4735 to grant easement to Southern California Edison. Motion to set Public Hearing for October 20, 1986. Adopted Resolution #86-442 approving sale of property to YWCA. Adopted Resolution #4942 authorizing and directing execution of DDA. Commission directed that City consider waiving fees for YWCA rehab -- with YWCA obtaining permit as tenant. Commission further approved reimbursement to YWCA for Workman's Compensation Insurance up to $2500. Mayor and Common Council authorized (by motion) Agency to obtain building permits as owner/builder for rehab of YWCA Bldg. and waived fees required. Community Development Commission authorized the Executive Director to sign on behalf of the RDA as owner/builder for the YWCA remodeling with all City fees being waived. Set Joint Public Hearing of Mayor and Common Council and Community Development Commission for October 19, 1987. Mayor and Common Council/Community Development Commission continued Public Hearing to November 16, 1987, and referred to Redevelopment Committee for review. Mayor and Common Council instructed Parks and Recreation Department to contact State of California for preparation of Lease Agreement for use of park land for Teddy Bear Tymes. Public Hearing continued to 12/21/87. Staff and Counsel directed to research lease. Community Development Commission directed staff to begin procedures needed to convey property to the City of San Bernardino for 51.00. Motion to Set Joint Public Hearing for March 10, 1988, at 11:00 a.m., Authorized RDA staff to retain $5,000 deposit by YWCA pending negotiations. Resolution 88-80 and 5098 authorized Lease between the Redevelopment Agency, City and YWCA. Authorized return of $5,000 deposit. Redevelopment Committee reviewed letter from YWCA regarding lease terms. Referred to YWCA Ad Hoc Committee. YWCA Ad Hoc Committee recommended sale and referred to Ways and Means Committee to determine sales price. 4429G:SG:sm 9/27/88 Synopsis of Previous Commission/Council action: (continued) 09/06/88 09/19/88 09/26/88 Set Joint Public Hearing for September 19, 1988. Joint Public Hearing continued to Monday, October 3, 1988. Ways and Means Committee continued to October 10, 1988. 4429G:SG:sm 9/27/88 S T A F F REPORT On September 26, 1988 the Ways and Means Committee met to discuss the terms and selling price of the property occupied by the YWCA. The item was continued to October 10, 1988 and staff was directed to secure data on the 1976 value of the property to assist in the determination of the sales price. Staff is obtaining bids from appraisers and has received one response (from Mr. Robert Cooley) that indicates it will take 30 to 60 days at a cost of $3750 to $4250 for the appraisal. We will solicit other bids but have based the suggested motions on that estimate. If the appraisal takes 30 days it could be considered at Ways and Means on November 14, 1988. If it takes longer, there will need to be another continuance. 4429G:SG:sm 9/27/88 REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION FROM: James E. Robbins, Acting Executive Director SUBJECT: REDEVELOPMENT AGENCY AND THE CITY OF SAN BERNARDINO TO SHARE THE TOTAL COST FOR THE SERVICES PROVIDED BY EMPLOYEE ASSISTANCE PROGRAM DATE: SEPTEMBER 28, 1988 Synopsis of Previous Commission/Council/Committee Action: 85-01-05 On February 5, 1985, Council adopted Resolution 85-50 which authorized the execution of an agreement with "the Counseling team" for providing an Employee Assistance Program for sworn Police Officers. 86-04-07 On April 7, 1986, Council reviewed the recommendation for a comprehensive Employee Assistance Program for all City Employees. Referred item back to Council Personnel Committee. 86-10 Council Personnel Committee directed staff in October 1986 to readvertise for "requests for proposals" regarding an Employee Assistance Program. SYNOPSIS CONTINUED (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO TO SHARE THE TOTAL COST FOR THE SERVICES PROVIDED BY AN EMPLOYEE ASSISTANCE PROGRAM FOR AGENCY AND CITY EMPLOYEES. ~?Jr~ d . ignature / J? JdG<~ / Contact Person: James E. Robbins Phone: 384-5081 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: $10,080 Project: All Date: October 3, 1988 Council Notes: JLV:rm:15l9H Agenda Item No. ;2> Synopsis of Previous Commission/Council/Committee Action: (continued) 87-03-09 City Resolution #87-57 adopted authorizing and directing the execution of an Agreement between the Redevelopment Agency of the City of San Bernardino and the City of San Bernardino to share the total cost for the services provided by an Employee Assistance Program for Agency and City employees. 87-03-09 Commission Resolution #4955 adopted authorizing and directing the execution of an agreement between the Redevelopment Agency of the City of San Bernardino and the City of San Bernardino to share the total cost for the services provided by an Employee Assistance Program for Agency and City employees. 88-07-21 Redevelopment Committee reviewed item at Budget Workshop and recommended approval. 88-08-18 City approved the following motions: Motion 11. That the City renew the existing Agreement with the Counseling Team for Employee Assistance Program services, for one (1) year, according to provision five (5), Option to Extend, of said Agreement. Motion 12. That the City renew the existing Agreement with the Redevelopment Agency for Counseling Services with reimbursement for one (1) year according to provision .'D", Option to Extend, of said Agreement. S T A F F REPORT The synopsis on the preceding page clearly defines the background and history in this matter. According to the reports and statistics received and reviewed by the City's Risk Management personnel all indications are that the Employee Assistance Program is successful and positive. Utilization is at a high level considering the fact that the program has only been in existence for one year. The payoff, for this type of program over time, is higher than originally introduced. The City's Agenda Item of August 18, 1988 provided you with copies of the utilization reports from the Counseling Team. The item before you is the follow-up resolution to complete council's action of August 18, 1988 and staff's recommendation is that we renew the program, with no changes, for another year. JLV:rm:1519H 1 2 3 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE 4 CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 5 BERNARDINO AND THE CITY OF SAN BERNARDINO TO SHARE THE TOTAL COST FOR THE SERVICES PROVIDED BY AN EMPLOYEE ASSISTANCE PROGRAM FOR 6 AGENCY AND CITY EMPLOYEES. 7 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 9 SECTION 1. The Acting Executive Direct0r of the 10 Redevelopment Agency of the City of San Bernardino is hereby 11 authorized and directed to execute for and on behalf of said 12 Agency an Agreement between the Redevelopment Agency of the City 13 of San Bernardino and the City of San Bernardino to share the 14 total cost for the services provided by an employee asistance 15 program for Agency and City employees, a copy of which is 16 attached hereto as Exhibit "1" and incorported herein by this 17 reference as though fully set forth at length. 18 I HEREBY CERTIFY that the foregoing resolution was duly 19 adopted by the Community Development Commission of the City of 20 San Bernardino at a regular meeting 21 thereof, held on the 22 following vote, to wit: 23 III 24 III day of , 1988 by the 25 III 26 III 27 III 28 1 DAB:cez 9/27/88 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 AYES: Commissioners NAYS: ABSENT or ABSTAIN: Acting Secretary The foregoing resolution is hereby approved this day , 1988. of Chairman of the Community Development Commission of the City of San Bernardino 16 17 Approved as to form 18 and legal content: AGENCY COUNSEL 19 20 21 22 23 24 25 26 27 28 DAB:cez 2 9/27/88 SEc~r~ARY'6 CERTlr.~'TE or ADOPTION AND AUTHENTICATION ( I, Jess Flores, Acting Secretary of the Community Dev~lopmpnt Commission, DO HEREBY CERTIFY that the attached Resolution if> II tlU~ and corlect copy of Resolution No. adopted , 19 , by the Community Development Commibsiorl of the City of San Bernardino, by the vote set forth below, Brld ttlbt said Resolution has not been amended 01 repealed. Check Appropriate Box COMMISSION MEMB[RS YEAS NAYS ABSENT Af-\ST~. IN ESTHER R. ESTRADA [=1 1=1. 1=1 1=' JACK REILLY 1=1 1=1 1=1 "[=1 JESS FLORES 1=1 1=1 1=1 1=1 ( MICHAEL MAUDSLEY 1=1 I. 1 1=1 1=' TOM MINOR 1=' '=1 1=1 1-1 VALERIE POPE-~UDLAM 1=1 1=1 ,=, ,= 1 NORINE MILLER I. , ,=, ,=, '=J , 1988. DATED: Jess Flores, ~cting Secretary Commu nit y Deve 1 opmen t Comm is f. i on of the City of San 8ernlrdin{1 '0 (SEAL) 6f\r.OOO~q/~4)O~