HomeMy WebLinkAbout05- Community Development Commision DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J.HENDERSON SUBJECT: SP COMMERCIAL
Executive Director DEVELOPMENT FIRST
AMENDMENT AND
DATE: April 27, 1994 CERTIFICATION OF
COMPLETION
Synopsis of Previous Commisslon/Council/Committee Action(s):
None.
___________________________________________________________________________________________________________________________________________
Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission approve a First Amendment to an Owner
participation Agreement with SP Commercial Development.
MOTION B: That the Community Development Commission authorize the Chairman and Secretary to
execute the subject First Amendment.
Motions Continued to Neat Paee...
A
Administrator
KENNETH J.HE DERSON
Executive Director
Contact Person(s): Kenneth J.Henderson/John Wood Phone: 5081
Project Area(s): Ward(s):
Supporting Data Attached: Staff Report:Certificate of Completion:Resolution
FUNDING REQUIREMENTS: Amount: N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:JMW:Iag:05-01-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/0211994
Agenda Item Number: r
Request for Commission/Council Action
SP Commercial Development First Amendment
April 27, 1994
Page Number-2-
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Recommended Motion(s) Continued:
MOTION C: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
APPROVING THE EXECUTION OF A CERTIFICATE OF COMPLETION
FOR SP COMMERCIAL DEVELOPMENT FOR THE DEVELOPMENT OF
THE CLUB CENTER
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KJH:JMW:Iag:05-01-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/0211994
Agenda Item Number:
DEVELOPMENT DEPARTMENT
STAFF REPORT
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SP Commercial Development First Amendment and Certificate of Completion
On June 14, 1984, the Redevelopment Agency entered into an Owner Participation Agreement
("OPA")with SP Commercial Development ("SP"), an entity controlled by Mr. Mery
Simchowitz, for the development of a discount retail complex commonly know as "The Club
Center". This complex is located south of Redlands Boulevard and east of Hunts Lane and
includes such well known retailers as Home Base, Costco, Auto Expo and Camping World.
The development has been essentially complete since March of 1988 and it is appropriate that the
project file be closed out and a Certificate of Completion be issued. Before this can occur,
however, and for reasons which will be explained below, a First Amendment to the OPA should
be executed.
The Club Center has been an unqualified success by any method of measurement one might
choose to employ. Hundreds of newjobs have been created, blight in the area has been largely
eliminated and the City's/Agency's tax bases have been greatly increased as a result of this
farsighted public/private venture.
SP was to have completed a total of 529,100 square feet of buildings, with an assessed valuation
of$9,610,000,by September of 1993. In fact, a total of 405,683 square feet of buildings, plus a
50,400 square foot outdoor storage area for Home Base, with an overall assessed valuation of
$15,877,093, was completed by that date. Though the land that the outdoor storage area
occupies was originally intended for another building, the storage facility has significantly
enhanced Home Base's operational capabilities and should therefore be considered a prudent
alternative use of the affected land. It is also noteworthy that all of the construction, with the
exception of the outdoor storage area, was completed by March of 1988.
Thus, though SP did not construct all of the square footage that the agreement called for, it
exceeded the assessed valuation target(which is a considerably more important measure than
square footage)by$6,267,093. In addition, because SP performed well ahead of the OPA
construction schedule, new tax increment was generated much more quickly than would have
been the case otherwise. Finally, it is actually a desirable outcome that so much value could be
generated by 405,683, as opposed to 529,100 square feet of buildings. Because of this, there is
still some land within The Club Center area that can be built upon, creating still more assessed
valuation in the future.
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KJH:JMW:lag:05-01-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/02/1994
Agenda Item Number.
DEVELOPMENT DEPARTMENT STAFF REPORT 0
SP Commercial Development OPA First Amendment
April 21, 1994
Page Number-2-
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In summary, then, though the developer fell somewhat short in terms of the OPA square footage
requirement, the project has been a tremendous success in terms of both new assessed valuation
and early completion. Nonetheless, Senior Assistant City Attorney Dennis Barlow has advised
that, before a Certificate of Completion can be issued, the OPA should be amended to reflect the
parties agreement as to the actual square footages, assessed valuations and completion dates that
were achieved.
Attached for your reference are copies of the First Amendment(which has already been executed
by the developer), the Certificate of Completion and the Resolution authorizing execution of the
Certificate of Completion.
Based upon the foregoing, staff recommends adoption of form motions "A", 'B", and "C".
V4 Low,
KENNETH J. IIIENDERSON,Executive Director
Development Department
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KJH:JMW:lag:05-01-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/02/1994
Agenda Item Number: 1
I Recording Requested by )
Redevelopment Agency )
2 )
When Recorded, Mail to: )
3 Redevelopment Agency of the )
the City of San Bernardino
4 201 N. "E" Street, 3rd Floor )
San Bernardino, CA 92401 )
5 Attn: John Wood )
6 (space above for Recorder' s use only)
REDEVELOPMENT AGENCY OF THE
8
CITY OF SAN BERNARDINO
9
10 AMENDMENT TO
OWNER PARTICIPATION AGREEMENT
11 (SP COMMERCIAL DEVELOPMENT)
12
13 This Amendment to Agreement, made and entered into this
14 day of 1 1994, by and between the
15 Redevelopment Agency of the City of San Bernardino, a public body,
16 corporate and politic ( "Agency' ), and SP COMMERCIAL DEVELOPMENT,
17 a California limited partnership ( "Participating Owner" ) .
18 WITNESSETH THAT:
19 WHEREAS, the parties entered into that certain Owner
20 Participation Agreement ( "OPA" ) dated June 14, 1984, and recorded
21 on July 20, 1984 as document number 84-171574 of Official Records
22 of the Recorder of San Bernardino County; and
23 WHEREAS, the OPA related to the development of the Club
24 Center in the South Valle Redevelopment Project Area in the
25 vicinity of Hunts Lane, Redlands Boulevard, Caroline Avenue and
26 Concourse Way, within the City of San Bernardino; and
27 WHEREAS, the OPA required a development of eight (8 )
28 industrial/commercial structures totalling approximately five
DAB/j [SpCommercial.OPA] 1
S
4
1 hundred twenty-nine thousand one hundred (529, 100) square feet,
2 with an assessed valuation of $9, 610,000; and
3 WHEREAS, the parties agree that a development of four
4 hundred five thousand six hundred eighty three (405, 683) square
5 feet, with an outdoor storage area of fifty thousand four hundred
6 (50,400) square feet, with an assessed valuation of $15, 877,093,
7 will be of significantly greater benefit to the City, and desire
8 to amend the OPA to reflect said changes,
9 NOW, THEREFORE, the Agency and the Participating Owner for
10 and in consideration of the mutual promises and agreements herein
11 contained and under the conditions hereinafter set forth, do
12 hereby agree as follows:
13 Section 1. The fifth recital of the OPA located on page 2
14 thereof is hereby amended to read as follows:
15 "WHEREAS, the Participating Owner desires to
redevelop the Property described in Exhibit 'A-1 ' and
16 to construct or cause to be constructed the project
thereon consisting of seven (7) industrial/commercial
17 office building structures totalling approximately
four hundred five thousand six hundred eighty three
18 (405, 683) square feet, with an outdoor storage area of
fifty thousand four hundred ( 50,400) square feet (the
19 'Project' ) more fully described on Exhibit 'B'
attached hereto and by this reference made a part
20 hereof which Exhibit 'B' may from time to time be
amended, as necessary; and"
21
22 Section 2. A new recital is hereby added to the OPA to read
23 as follows:
24 "WHEREAS, the creation of jobs and property tax
income to the City based on an assessed valuation of
25 the Project of $15, 877,093, is of critical importance
to the Agency; and"
26 Section 3. Exhibit "A-2" is hereby amended to delete
27 Building #5 and place in its stead an outdoor storage area of
28
DAB/j [SpCo..ercial.OPA] 2
5
0 0
1 fifty thousand four hundred (50,400) square feet.
2 Section 4. Exhibit "B" is hereby amended by deleting
3 Building No. 5 and its description and by inserting the following
4 language:
5 "Location No. 5
6 Construction of an outdoor storage area of
approximately fifty thousand ( 50,000) square feet for
7 industrial/commercial/retail use, construction to be
completed by May 1992, and a Notice of Completion to
8 be filed prior to April 1993. "
9 IN WITNESS WHEREOF, the Agency and the Participating Owner
10 have executed this Agreement as of the date first above written.
11 "AGENCY"
12
REDEVELOPMENT AGENCY OF THE
13 CITY OF SAN BERNARDINO
14
By
15 Tom Minor, Chairman of the
Community Development Commission
16 of the City of San Bernardino
17 "PARTICIPATING OWNER"
18 SP COMMERCIAL DEVELOPMENT
A California Limited Partnership
19 A
20 By 1
21
Title:
22 Attest:
23 By:
24 Secretary
25 Approved as to
Legal Form and Content:
26
27 By: i
Agency C� nsel
28
DAB/j [SpCo.ercial.OPA] 3 S_
sl
0 0
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
On before me,
, personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature (Seal )
Nvow
0 0
r/ STATE OF CALIFORNIA )
COUNTY OF SAN-4iE1 ::ARD-IN& )
0'0V —
On 1 13 144 before me,
tic-, personally appeared
WI e,r✓ w �+ru t.jx x—cv: f
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature /L'-�,A - (Seal)
K FICIAL SEAL
S. BANNERMAN
PUBLIC -CALIFORNIA
B n. exp res M Y
mm. expires MAY 6, 1994
' .S
O
1 When Recorded, Mail to:
2
3
4
5
6
7
CERTIFICATE OF COMPLETION
8
9 We, Tom Minor, Chairman and Kenneth J. Henderson, Secretary
10 of the Redevelopment Agency of the City of San Bernardino, hereby
11
certify as follows:
12 By its Resolution No. , adopted and approved
13 1994, the Redevelopment Agency of the City of San Bernardino has
14 resolved as follows:
15 Section 1. The improvements required to be constructed in
16 accordance with ., that certain Owner Participation Agreement
17 ( "Agreement" ) dated June 14, 1984, as amended, by and between the
18 Redevelopment Agency of the City of San Bernardino, and SP
19 Commercial Development ( "Participating Owner" ) have been completed
20 in accordance with the provisions of the Agreement.
21 Section 2. This Certificate of Completion shall constitute
22 a conclusive determination of satisfaction of the agreements and
23 covenants in said Agreement with respect to the obligations of the
24 Participating Owner, and its successors and assigns, to construct
25 the improvements and the dates for the beginning and completion
26 thereof.
27
28
DAB/j [Certificate,Com] 1
1 Section 3. The real property to which this Certificate of
2 Completion pertains is that certain land located in the City of
3 San Bernardino, County of San Bernardino, State of California,
4 more particularly described as:
5 See Exhibit "A" attached hereto
6 and incorporated herein
7 DATED AND ISSUED this day of
8 1994.
9
10 Chairman of the Redevelopment Secretary of the Redevelopment
11 Agency of the City of Agency of the City of
San Bernardino San Bernardino
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
DAB/j [Certificate.Com] 2
S
EXHIBIT "A"
LEGAL DESCRIPTION
PARCELS 1, 2, 3, 4, 5 AND 7 OF PARCEL MAP NO. 2803, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN
BOOK 34 OF PARCEL MAPS, PAGES 83 AND 84, RECORDS OF SAID COUNTY.
1 RESOLUTION NO.
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF
3 THE CITY OF SAN BERNARDINO APPROVING THE EXECUTION OF A
CERTIFICATE OF COMPLETION FOR SP COMMERCIAL DEVELOPMENT FOR THE
4 DEVELOPMENT OF THE CLUB CENTER.
5 WHEREAS, the Redevelopment Agency of the City of San
6 Bernardino and SP Commercial Development entered into that certain
7 Owner Participation Agreement dated June 14, 1984, and recorded on
8 July 20, 1984 as document number 84-171574 of Official Records of
9 the Recorder of San Bernardino County; and
10 WHEREAS, the parties approved an Amendment to the Owner
11 Participation Agreement dated , 1994; and
12 WHEREAS, the Owner Participation Agreement related to the
13 development of the Club Center in the South Valle Redevelopment
14 Project Area in the vicinity of Hunts Lane, Redlands Boulevard,
15 Caroline Avenue and Concourse Way, within the City of San
16 Bernardino; and
17 WHEREAS, the improvements required to be constructed by the
18 Owner Participation Agreement have been completed with an assessed
19 valuation of $15, 877,093,
20 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
21 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
22 SECTION 1. The improvements required to be constructed in
23 accordance with that certain Owner Participation Agreement
24 ( "Agreement" ) dated June 14, 1984, as amended, by and between the
25 Redevelopment Agency of the City of San Bernardino and SP
26 Commercial Development ( "Participating Owner" ) have been completed
27 in accordance with the provisions of the Agreement.
28 SECTION 2. The Chairman and Secretary of the Redevelopment
DAB/js [SpCo—ercial.Res] 1
1 Agency of the City of San Bernardino are hereby authorized and
2 directed to execute a Certificate of Completion in a form as shown
3 on Exhibit "1" attached hereto and incorporated herein.
4 I HEREBY CERTIFY that the foregoing Resolution was duly
5 adopted by the Community Development Commission of the City of
6 San Bernardino at a meeting thereof, held on the
7 day of 1994, by the following vote, to-wit:
8 Commission Members: AYES NAYS ABSTAIN ABSENT
9 NEGRETE
10 CURLIN
11 HERNANDEZ
12 OBERHELMAN
13 DEVLIN
14 POPE-LUDLAM
15 MILLER
16
17 Secretary
18 The foregoing Resolution is hereby approved this day
19 of 1994..
20
21 Tom Minor, Chairman
22 Community Development Commission
of the City of San Bernardino
23 Approved as to form
24 and legal content:
25
26 By`
Agency Counsel
27
28
DAB/js [SpCommercial.Res] 2