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HomeMy WebLinkAbout03- RDA REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING March 28, 1994 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Pope- Ludlam at 3:20 p.m.,in the Economic Development Agency Board Room,201 North"E" Street, San Bernardino,California. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam and Committee Members Edward Negrete; Ralph Hernandez. Absent:None. STAFFPRESENT Timothy C. Steinhaus,Administrator,Economic Development Agency;Kenneth J. Henderson, Executive Director,Development Department; Barbara Lindseth,Manager,Administrative Services Division; David Norman,Development Specialist,Development Department,Phil Arvizo,Executive Assistant to the Council; Lorraine Velarde,Executive Assistant to the Mayor; Diane Roth,Deputy City Attorney; La Vonda M-Pearson,Recording Secretary,Development Department. OTHERS IN ATTENDANCE Timothy Sabo,Special Counsel, Sabo and Green;Richard Brooks,The Sun Newspaper. 1. FREEWAY HOME CENTER Chairwoman Pope-Ludlam discussed the difficulty Allan Steward,Steward and Associates,was having in obtaining the loan from the RTC for the Freeway Home Center. Timothy C. Steinhaus,Administrator,Economic Development Agency,informed the Committee of his conversation with Mr. Steward regarding the RTC loan. He indicated that Mr. Steward did not want to have a double escrow and did not think it was worth the trouble. This scenario would require the Commission to amend its prior actions. Committee Member Hernandez commented on Mr. Stewards ability to lease up property in a timely manner. RECOMMENDATION This item was for information only. REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminmar.942 - I- March 28,1994 2. SENATE BILL 1125 Barbara J.Lindscth,Manager,Administrative Services Division,explained this item indicating that Redevelopment Agencies across the state were being asked to offset the state budget for schools. She indicated that last year,the Agency paid$2.3 million to the state,and this year it was a total of$517,000. Kenneth J.Henderson,Executive Director,Development Department,indicated that if the Agency did not pay the assessment,the County Auditor was authorized to withhold the Agency's future tax increment funds. RECOMMENDATION The Committee recommended approval of this item to the Commur ityDevelopment Commission. NB-1. HIRING OF CONSULTANTS Committee Member Hernandez made a motion,seconded by Committee Member Negrete,that the need to take action on this item arose after the posting of the Agenda. Motion carried by the following vote: Ayes: Chairwoman Pope-Ludlam; Committee Member Negrete; Committee Member Hernandez Kenneth J. Henderson,Executive Director,Development Department,briefed the Committee on the past actions regarding the Ramona Senior Housing,Inc.project. He indicated that a pro-forma had been completed which provided appropriate rental rates for the project. Timothy C. Steinhaus,Administrator,Economic Development Agency,stated that a meeting was held with himself,Esther Estrada,Ramona Senior Housing,Inc,Mayor Minor and Tim Sabo,Special Counsel,regarding the previous tax credit application that was prepared for this project. He explained that the Mayor authorized staff to pay up to$25,000 for a group of consultants to assist in the preparation of the tax credit application. He indicated that the funds paid for the consultants would be repaid out of the tax credit monies received. Committee Member Hernandez expressed concern regarding the assistance given to this project without the notification of the Council. He discussed the need of the Council to be informed of all consultants hired by staff. Committee Member Negrete expressed concern regarding not being notified of actions taken on a project located in his ward. He informed staff that he wished to be informed of all actions that take place in the first ward. Timothy Sabo,Special Counsel, Sabo and Green,explained his involvement with the Ramona Senior Housing,hic.,project. He discussed the financial status of the project and emphasized the need to have the tax credit application rewritten before it was submitted. He indicated that if the application was approved, the project could receive about$1.5 million in tax credits. © REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rmiumar.942 -2- March 28,1994 Discussion ensued regarding the pros and cons of the tax credit application and CHFA fmancing. Mr. Steinhaus indicated that staff would keep the Redevelopment Committee informed of all progress that takes place regarding this project. Committee Member Hernandez recommended that all consultant agreements over$10,000 be discussed by the Committee or Commission before approval. He requested that the Council still be informed of those agreements under$10,000. Mr. Steinhaus listed all the consultants that were hired for this project and the costs. RECOMMENDATION The Committee recommended to the Community Development Commission that staff be authorized to notify the Committee of all consultant agreements over$10,000 before they are approved and tha the Agency's Procurement Policy and Procedures be amended to reflect same. NB-2 GREAT WESTERN BANK WALL/PARKING LOT Timothy C. Steinhaus,Administrator,Economic Development Agency,explained that tenants in the building along with the Main Street Program took down a portion of the wall and the stairs. He stated that the cost to take down the remainder of the wall is$12,000. He stated that staff proposes to pay$8,000,and would like to request the owners of the building to pay the remaining$4,000. Mr. Steinhaus stated that once the wall is completely removed,it would be replaced by square railing, landscape and night lights. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission on a2-1 vote. 3. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 4. ADJOURNMENT There being no further business,the meeting of the Redevelopment Committee was adjourned at 4:39 p.m. APPROVED BY: VALERIE POPE-LUDLAM,Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminmar.942 -3- March 28,1994 REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING March 10,1994 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Pope- Ludlam at 3:02 p.m.,in the Economic Development Agency Board Room,201 North"E"Street,San Bernardino,California. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam and Committee Members Edward Negrete; Ralph Hernandez. Absent:None. STAFF PRESENT Kenneth J.Henderson,Executive Director,Development Department; Susan Morales,Assistant to the Agency Administrator; Barbara Lindseth,Manager,Administrative Services Division;Roger Hardgrave, Director of Public Works;Diane Roth,Deputy City Attorney; Phil Arvizo,Executive Assistant to the Council; Lorraine Velarde,Executive Assistant to the Mayor; La Vonda M-Pearson,Recording Secretary, Development Department. OTHERS IN ATTENDANCE Dennis Caldwell,Megaforces Security;Richard Brooks,The Sun Newspaper; Richard Steiler, Standard Mortgage. 1. STANDARD MORTGAGE LOAN GUARANTEE Kenneth J.Henderson,Executive Director,Development Department,explained the need for the loan guarantee requested by Mr. Steiler of Standard Mortgage,emphasizing that the bank would be willing to grant Standard Mortgage the loan if the Agency provided it with a loan guarantee. Mr.Henderson stated that staff believed Standard Mortgage generated enough cash flow to extinguish the proposed debt. He also informed the Committee that Mr. Steiler had submitted a list of properties to collateralize the loan guarantee estimated at approximately$2 million. He indicated that Mr. Steiler was willing to submit additional properties as collateral if the Committee desired. Mayor Minor clarified that the properties listed in the backup were owned by both Mr. Steiler and Standard Mortgage. © REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminmar.941 -I- March 10,1994 Richard Steiler,Standard Mortgage,made a correction to the list of properties submitted by Standard Mortgage. He stated that the property listed as being located on"7th and 8th" Street should read"F and 8th Street. RECOMMENDATION The Committee recommended this item be forwarded to the Community Development Commission. The Committee requested staff ensure the property submitted as collateral be valued enough to substantiate the loan. 2. SAN MARCOS STREET IMPROVEMENTS Diane Roth,Deputy City Attorney,questioned the discussion of this item during the Housing Committee Meeting. Committee Member Hernandez explained that when the item was presented to the Housing Committee it was continued before any discussion. Committee Member Hernandez commented on the necessity to complete the street improvements due to developments in the area. He indicated that this item was formally approved two(2)years ago. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. NB-1. SECURITY SERVICES Committee Member Hernandez made a motion,seconded by Committee Member Negrete,that the need to take action on this item occurred after the posting of the Agenda. Motion carried by the following vote: Ayes: Chairwoman Pope-Ludlam; Committee Members Negrete;Hernandez. Dennis Caldwell,Megaforees Security,gave a brief presentation on the type of security services his company provides. He commented on his work for Ann Hams as well as his desire to complete the security services for current Agency projects. He discussed his training and experience and answered relative questions. Kenneth J. Henderson,Executive Director,Development Department,indicated that Mr. Caldwell's services could be used for certain Agency projects at a later date. RECOMMENDATION This presentation was for information only. REGULAR MEETING REDEVELOPMENT COMMITTEE hnp:rminmar.941 -2- March 10,1994 I� 3. HIRING OF OUTSIDE COUNSEL Committee Member Hernandez commented on the need for City Attorney's Office,as addressed in the management audit,to hire another attorney and how it relates to the budget deficit. He felt it would be beneficial for the Agency to hire its own Agency Counsel and allow the City's Counsel retained by the Agency to return to the City. This would take away the need for the Attorney's Office to hire another attorney,thus saving funds. Chairwoman Pope-Ludlam discussed difficulties experienced with the City Attorney's Office on various projects. She felt it would be beneficial for the Agency to have its own legal counsel. Mayor Minor commented on the pros and cons of hiring outside counsel for the Agency. Diane Roth,Deputy City Attorney,indicated that a hired counsel would not have the full independence necessary to do the job. She also indicated that the cost would not be any less expensive. Committee Member Hernandez stated that although the Agency pays approximately 90%of the Agency Counsel's salary,they only receive about 20%of his work. Kenneth J. Henderson,Executive Director,Development Department,explained that the City Attorney or designee was designated as Agency Counsel in 1984 by resolution. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. 5. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 6. ADJOURNMENT There being no further business,the meeting of the Redevelopment Committee was adjourned at 3:35 p.m. APPROVED BY: VALERIE POPE-LUDLAM,Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE hnp:rminmar.941 -3- March 10,1994