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HomeMy WebLinkAbout1990-5268 SBEOOOOl-387\lw 12/12/90 320 RESOLUTION NO. 5268 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE UNDERTAKING OF CERTAIN TRANSACTIONS IN CONNECTION WITH THE ACQUISITION OF CERTAIN PROPERTY AND MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF UNDERTAKING SUCH TRANSACTIONS WHEREAS, the city of San Bernardino, California (the "City"), is a municipal corporation and a charter city duly created and existing pursuant to the Constitution and the laws of the State of California; and .......... WHEREAS, the Community Development Commission of the city of San Bernardino (the "commission") on behalf of the Redevelopment Agency of the ci ty of San Bernardino (the "Agency"), is a redevelopment agency, a public body, corporate and politic of the State of California, organized and existing pursuant to the community Redevelopment Law (Part 1 of Division 24) commencing with section 33000 of the Health and Safety Code of the State of California (the "Act"); and WHEREAS, pursuant to section 33445 of the Act, the Agency may, with the consent of the Mayor and Common Council of the City (the "council"), pay all or part of the costs of installation and - 1 - ~'~ construction of any building, facility, structure or other improvement which is publicly owned either within or without the boundaries of a redevelopment project area if the Council determines: (1) that such buildings, facilities, structures or other improvements are of benefit to the redevelopment project area or the immediate neighborhood in which the proj ect is located, regardless of whether such improvements are within another project area, or in the case of a project area in which substantially all of the land is publicly owned, that the improvements are of benefit to the adjacent project area of the Agency, and (2) that no other reasonable means of financing such buildings, facilities, structures or other improvements is available to the community, and such determination by the Agency and the Council shall be final and /,;:i..' conclusive; and ~ WHEREAS, the ci ty and the Commission have previously approved and adopted a Redevelopment Plan for the Southeast Industrial Park Redevelopment Project (the "Redevelopment Plan"); and ,,<<,,;;.~.. WHEREAS, the Agency deems it desirable to cause the acquisition of certain property currently owned by the City and previously dedicated for use by the city's Board of Water Commissioners (the "Property") as legally described in Exhibit "A" attached hereto and incorporated herein by this reference, which Property is generally located at the intersection of Arrowhead - 2 - '- Avenue and Orange Show Road within the Central City South Redevelopment Project Area; and WHEREAS, the San Bernardino Joint Powers Financing Authority (the "Authority") has previously caused the issuance of its $5,700,000 Joint Powers Financing Authority, Tax Allocation Bonds, 1990 Series F (Southeast Industrial Park Redevelopment Project Area) (the "1990 Bonds") for the purposes of enabling the Agency to undertake redevelopment projects both within the Southeast Industrial Park Redevelopment Project Area and outside of such Project Area to the extent such redevelopment projects are of benefit to such Project Area; and '- WHEREAS, the Agency deems it desirable to use proceeds of the 1990 Bonds for the purposes of causing the acquisition of the Property and paying the purchase price for the Property in an amount equal to the City's costs of the Property, plus interest, which price is currently estimated to be equal to Five Million One Hundred sixty Seven Thousand Dollars and Sixty Nine Cents ($5,167,000.69) (the "Purchase Price") and which Purchase Price is at least equal to the fair market value for the Property; and ''- WHEREAS, the Agency deems it desirable to acquire the Property from the City in order that the Agency may hold the Property for public use until such time as the redevelopment of the Property for either private or governmental uses is deemed - 3 - necessary and appropriate in connection with the implementation of '''''Nri;# the Redevelopment Plan for the Central City South Redevelopment Project Area; and WHEREAS, the Agency has previously entered into a certain Loan Agreement with the Authority (the "Loan Agreement"), a copy of which is attached hereto as Exhibit "B" and incorporated herein by this reference, whereby the Agency loaned to the Authority an amount equal to $4,965,000 (the "Agency Loan"); and WHEREAS, in connection with the execution of the Loan Agreement, the Authority used the proceeds of the Loan Agreement to loan monies (the "Authority Loan") to the city and the Board of Water Commissioners which Authority Loan was secured by a promissory note (the "Note") and deed of trust (the Deed of Trust"); and WHEREAS, the City and the Board of Water Commissioners intend to repay the Note to the Authority which in turn shall repay its obligations under the Loan Agreement, and the Agency, at this time, deems it appropriate to accept and acknowledge repaYment of the Agency Loan from the Authority and to cause the Agency Loan repaYment monies to be placed in the accounts of the Agency and to be redesignated as tax increment revenues attributable to the Southeast Industrial Park Redevelopment project Area; and ~ ,-. - 4 - .~ '- ;A'$i~' "~ WHEREAS, the Agency further deems it desirable to authorize the paYment of an amount equal to $407,047.57 of tax increment revenues available from the Southeast Industrial Park Redevelopment Project Area (the "SEIP Tax Increment Amount") to the Board of Water Commissioners in connection with the paYment of certain administrative, architectural and engineering costs and expenses, previously incurred by the Board of Water Commissioners in connection with its abandonment of operations on the current maintenance yard site and its proposed relocation to the Property; and WHEREAS, the City's Board of Water Commission has, on December 10, 1990, taken official action to approve the transaction as contemplated hereinabove as it relates to the Board of Water Commissioners; and WHEREAS, the acquisition of the Property by the Agency will be of benefit to the Southeast Industrial Park Redevelopment Project Area to the extent that the Agency, through the acquisition of the Property, shall cause to be repaid the Agency Loan thereby creating a source of revenues within the Southeast Industrial Park Redevelopment Project Area that may then be used by the Agency to undertake its redevelopment projects in accordance with the terms and provisions of the Redevelopment Plan and its redevelopment objectives; and - 5 - WHEREAS, the use of the SEIP Tax Increment Amount is '~~ necessary to facilitate the above described transactions, and therefore its expenditure shall also benefit the Southeast Industrial Park Redevelopment Project Area to the extent that it shall cause to be made available certain tax increment revenues for uses consistent with the Redevelopment Plan for the Southeast Industrial Park Redevelopment Project Areaj and WHEREAS, because of the proximity of the Property and the Central City South Redevelopment proj ect Area to the Southeast Industrial Park Redevelopment Project Area, the Agency's acquisition of the Property and its ability to control the use of the Property in a manner consistent with the goals and objectives of the Agency, will provide a benefit to the Southeast Industrial Park Redevelopment Project Areaj and WHEREAS, because of the interaction between the various redevelopment proj ect areas of the Agency, the ability of the Agency to create a source of funds in one project area by undertaking redevelopment activities in another project area will be of benefit to all project areas of the Agencyj and WHEREAS, it is appropriate for the Agency at this time to make certain findings and determinations and take certain action with respect to the proposed transactions contemplated herein. ,.... {; '-'- - 6 - NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: section 1. The Recitals hereinabove are true and correct and are incorporated herein by this reference. section 2. The Commission consents to the payment by the Agency of the costs of acquiring the Property and the expenditure of the SEIP Tax Increment Amounts for the reasons set forth in the Recitals hereinabove. section 3. The Commission further finds and determines that no other reasonable means of financing the acquisition of the Property other than through use of revenues available from the 1990 Bond proceeds is presently available to the City or the Agency and that the City and the Agency require the use of the revenues from the Bond proceeds in order to fund the acquisition of the Property. The acquisition of the Property will be of benefit to the Southeast Industrial Park Redevelopment Project Area to the extent that it shall cause to be made available certain otherwise encumbered tax increment revenues which now may be used to undertake redevelopment projects and help improve the economic viability and growth potential of said Project Area which will in turn help eliminate blight and will provide benefit to such Project Area. - 7 - section 4. The Commission hereby approves the acquisition of the Property by the Agency for the Purchase Price which Purchase Price is at least equal to the fair market value of the Property, as well as the use of the 1990 Bond proceeds to cause the acquisition of the Property. section 5. The Commission hereby accepts repayment proceeds of the Agency Loan from the Authority and deems that such Agency Loan repayment proceeds shall be designated as tax increment revenues attributable to the Southeast Industrial Park Redevelopment Project Area. section 6. The Commission hereby authorizes the payment to the Board of Water Commissioners of an amount equal to "- $407,047.57 in order to pay the administrative and expense costs of the Board of Water Commissioners associated with the abandonment of its previous site in connection with the city's prior purchase of the Property. section 7. The findings and determinations of the Agency as set forth herein shall be final and conclusive. .~ "-' - 8 - ~ RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE UNDERTAKING OF CERTAIN TRANSACTIONS IN CONNECTION WITH THE ACQUISITION OF CERTAIN PROPERTY AND MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF UNDERTAKING SUCH TRANSACTIONS Section 8. This Resolution shall take effect upon the date of its adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community Development Commission of the city of San Bernardino at a Requ1ar meeting thereof, held on the 17th day of December , 1990, by the following vote, to wit: commission Members: AYES NAYS ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER X -----X- ~ -----X- -----X- ----X- ----X- "-- b~ 'J.~~ day of The foregoing resolution is hereby approv December , 1990. 17th Chairman pment Commission San Bernardino Approved as to form and legal content: B~ A ency Q sel SBBOOOOl \DOC\387\es ~ "- - 9 - '-' ,...,...... .'-- STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Kenneth J. Henderson Secretary of the Communi ty Development Commission of the city of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Community Development Commission of the city of San Bernardino Resolution No. 5268 is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Commission of the City of San Bernardino this 17th day of December 1990. ~rJfAG,~ Secretary of the Communi ty Development Commission of the City of San Bernardino - 10 - F' . .. - ~ . '" . ;. . . . r'" '- r- '-- . e . EXHIBIT "A" THAT PORTION OF LOTS 44 AND 45, BLOCK 54, RANCHO SAN BERNARDINO, IN THE CITY OF SAN BERNARDINO, COtJN'l'Y OP SAN BERNARDINO, STATE OP CALIPORNIA, AS PIR PLAT RECORDID IN' BOOK 7, _OF !lAPS, PAGI 2, RECORDS OP SAID COtJH'l'Y, JlOREPARTICtJLARLy DISCRIBED AS POLLOWS I COHMEHCING AT THE SOO'l'HEAST CORNIR OP SAID LOT 45, THENCE SOUTH 89 DBG. 54' 30- WEST ALONG THE SOOTH LiNE OP SAID LOT 45, 400.00 Pi:I'l' '1'0 A POINT KIRlIN REPERRED TO AS POINT. -A-, THENCE NOR'l'II 0 DEG. 01' 51- WEST (RECORD ODEG. OS' 45-), 191.06 PEET TO THE TRUB POINT 01' BEGINNING, THENCE NORTH 0 DEG. 06' 51- WEST (RECORD o DEG. OS' 45.), 743~17 PElT TO '1'HB SOtrJ.'HEAST CORNER 01' TRACT NO. S907,RECORDID IN BOOK 79 or MAPS, PAGISSl AND 52, RECORDS or SAID COUNTY, THENCE SOUTH 89 DEG. 53' 39- WEST (RECORD 89 DEG. 53' ~O.), 200 PEET ALONG" THE SOOTH LINE or SAID. TRACT NO. 5907; - THlNCE SOUTH o DIG. 06' 51- BAS'!' (RECORD OPBG. OS' 45-), 100 PEET, THENCE SOOTH 89 DEG. 53' 39- WEST (RECORD 89DBG. 53' 50-), 100 I'EE'!', THENCE NORTH 0 DEC.;' 06' 51- WEST (RECORD 0 DIG. 05' 45.), 100 FIET TO ~ POINT ON THE SOOTH LINE OF SAID TRACT NO. 5907, THENCB SOOTH 89 DIG. 53' 39- WEST. (QCORD 89 PIG. 53' 50-), 593.11 (RECORD 593.45) PEET ALONG '!'HI SOOTH. LINE OP SAID ,TRACT NO. 5907 AND ITS PROLONGATION TO THE BAST LINE 01' ARROWHEAD AVENUE, 82. 5 PIET IN WIDTH; THENCI SOUTH 0 DIG. 09' 00 - WEST (RECORD 0 DEG. ,09' 30-), 752.88, FIET, PAftAU,EL WI~ UD 41.25 FEET EASTERLY OF THE CENTIR LINE. OF SAID ARROWHEAD AVENUI; THENCE NORTH 89 DEG. 16' 20- EAST, 896.86 FEET TO THE TRUE PC'INT OF BEGINNING. p""-" .~ c I"" '- .. . 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " "Exhibit B" 1 2 LOAN AGREEMENT (AGENCY TO AUTHORITY) THIS ,AG~EEMENT is entered into as of this ~~ ; . / day of \:L~ ' 1990, by and between the SAN BERNARDINO .~. JOINT POWE~~ FINANCING AUTHORITY (the "Authority") and the \/! COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO 3 4 5 6 7 8 9 10 (the "Agency"). R Eel TAL S A. WHEREAS, the Community Redevelopment Law (Health & Safety Code, Section 33603) authorizes redevelopment agencies to invest any money held in reserves or sinking funds, or any money not required for immediate disbursement, in property or securities; and B. WHEREAS, there are presently available to the Agency funds generated by the South East Industrial Park Redevelopment Project (the "Project"), which may be invested; and C. WHEREAS, the Authority desires to borrow funds from the Agency; NOW THEREFORE, the Authority and the Agency agree as follows: 1. The Agency agrees to loan Four Million, Nine Hundred Sixty-Five Thousand Dollars ($4,965,000.00) to the Authority on June 18, 1990. The Authority shall, in consideration of such loan, be obligated to pay to the Agency the amount of Four Million, Nine Hundred Sixty-Five Thousand Dollars ($4,965,000.00) (the "Loan Amount"), plus interest accruing at the lesser of (i) eight and one quarter percent (8.25%) or (ii) DAB/ses/Loan.agr June 7, 1990 1 c ~ \....- ,1""'""- ',-, " 19 20 21 22 23 24 25 26 27 28 "Exhibit B" 1 2 the maximum interest rate that may lawfully be paid by an 3 Authority on or before June 18, 1991 provided that at the option 4 of the Agency said loan may be extended for successive one year 5 periods. 6 2. This Agreement shall be effective as of the day and 7 date first above shown. 9 8 SAN BERNARDINO JOINT FINANCI AUTHORITY 10 11 ATTEST: 12 13 By: ~~/~ " Secretary 14 15 16 Approved as to form and legal content: 17 ~ rity Counsel 18 COMMUNITY DEVELOPME OF THE CITY OF ATTEST: By: ~~~ Secretary Approved as to form and legal content: B~~. ) Agenc Counsel - DAB/ses/Loan.agr June 7, 1990 2