HomeMy WebLinkAbout10-Economic Development
DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J. HENDERSON
Executive Director
SUBJECT: FREEWAY HOME CENTER
DATE: July 26, 1994
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SvnoD!lIls of Prevlou!!I Commlsslon/Coundl/Commlttee Actlonh:):
Over the past five (5) months, the Community Development Commission has discussed and taken numerous
actions in connection with the acquisition and renovation of the Freeway Home Center.
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Recommended Motlon(!II):
(Conununitv Develooment Commission)
(Councilman Hernandez's Recommendation)
MOTION:
That the Community Development Commission discuss and take possible action in cOIUlection
with the acquisition and renovation of the Freeway Home Center.
AP
mstrator
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Contact Person(s): Kenneth J. HendersonlRmilv Won.
Phone:
5081
Project Area(s): Southeast Industrial Park
Ward(s): Three (3)
Supporting Data Attached: Staff Report:
FUNDING REQUIREMENTS: Amount: $300.000/$2.200.000
Source:Tax IncrementlLoan Guarantee
Budget Authority: Approved conceptuallv 6/6/94
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Commlsslon/Cound. Notes:
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EMW:freeway.cdc(adw)
COMMISSION MEETING AGENDA
MEETING DATE: 08/01/1994
Agenda Item Number: ~
DEVELOPMENT DEPARTMENT
OF THE ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Freewav Home Center
Pursuant to a request from Councilman Hernandez on July 18, 1994 and again on July 20, 1994, the
following infonn ation on Freeway Home Center is presented as a status report in oIder to enable the
Community Development Commission to discuss and take possible action regaIding this matter.
On June 6,1994, the Community Development Commission conceptually approved fmancing for the
Freeway Home Center project subject to the following deal points.
I. That the Agency loan $300,000 directly to StewaId and Associates for physical rehabilitation,
with $135,000 already advanced as deposit to be included as part of the $300,000.
2. That the Agency guarantee an outside bank loan in the amount of $700,000 to Steward and
Associates in addition to the guarantee of $1.5 million dollars from Valley Bank.
3. Two hundred thousand dollars ($200,000) of the above $700,000 will be added to the $1.5
million dollars from Valley Bank to acquire Freeway Home Center for $1.7 million dollars,
with the remaining $500,000 to be utilized to carry the center for approximately 18 months at
today's interest rate.
On July 21, 1994, Valley Bank transmitted the attached letter to Mr. Steward indicating the following
requested items are still outstanding:
I. Recent interim financial statements including a balance sheet and income statement.
2. A complete 1992 personal federal tax return, including schedule "E" infonnation.
As of July 26, 1994, these items have not been received by Valley Bank, although the $20,000 check
for the appraisal and other infonnation requested has been received by the bank. It is important to
note that, for pUlposes of the proposed transaction with Valley Bank and other proposed participating
banks, the actions required are those of StewaId and Associates and not Agency staff.
Staff recommends adoption of the fonn motion.
~~dENDERSON' Executive Director
Development Department
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EMW:freeway.cdc(adw)
COMMISSION MEETING AGENDA
MEETING DATE: 0810111994
Agenda Item Number: ~
07-21-1994 11:08AM FROM Valley Bank MV.CA 92556
TO
3845434 P.02
MORENO VAUEY OFRCf
VALLEY BANK
July 21, 1994
Allan Steward
Allan Steward, Inc.
1887 Business Center Drive, Suite 3
San Bernardino, CA 92408
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RE: Freeway Home Center
Dear Mr. Steward:
,Please be advised that I have nO,t, ~et' ,received the following
items which were first requested' on June 8, 1994:
1) Your most recent interim financial statements,
including:
A) Balance sheet,-with a real estate listing
including price and date of acquisition.
r have received an incomplete real estate
schedule which was attached to the 1993 year-
end financial statement of Allan Steward,
Inc.
B) Income statement. I am in receipt of an
interim income statement for Steward and
Associates which only covers the one month
period of 3/1/94 to 3/31/94. The interim
statements must also reflect year-to-date
figures:
2) I had also requested from your accountant, John Bowers,
your complete'l992 personal federal tax return,
including Schedule E information.
As previously stated, these items are necessary in order to
complete the processinQ of your loan request and are needed
immediately_
Sincerely,
/l:/d ;J
Eri Hook
A. V. P ./Manager
';'\
cc: City of San Bernardino, , "
Economic Development Department
Ken Henderson, Executive Director
24010 SUNNYMEAD BLVD., CA 92SS3 . (909) 242-1174 . FAX (909) 242-1903 . P.O. BOX 188. MORENO VALLEY. CA 92551NJ188
. . lOL P.02