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HomeMy WebLinkAbout02- Revelopment Agency 0 0 REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING October 22, 1992 4:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:05 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Michael Maudsley. Also present was Mayor Holcomb. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jim Sharp, Project Manager, Development Department; John Hoeger, Project Manager, Development Department; Phil Arvizo, Executive Assistant to the Council; Dennis Barlow, Senior Assistant City Attorney; Peggy Ducey, Assistant to the City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Gene Wood, E. H. Wood and Associates; James Deskus, Radisson Hotel; Mark Kaufman, Kaufman Realty. 8. BIENNIAL PUBLIC HEARING Kenneth J. Henderson, Executive Director, Development Department, indicated that this item was a request for a public hearing date to be set on November 16, 1992. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoct2 - 1 - OCTOBER 22, 1992 3. OFFER TO PURCHASE - 201 NORTH "E" STREET BUILDING Kenneth J. Henderson, Executive Director, Development Department, stated that this was a receive and file item regarding the purchase of the building. He indicated that the consultants selected to analyze the purchase of the building requested additional time to review the project. He stated that staff would have a full report at the next regular scheduled meeting of the Redevelopment Committee. RECOMMENDATION The Committee recommended this item be received and filed. 4. POLICE HEADQUARTERS ACQUISITION - 466 WEST FOURTH STREET Kenneth J. Henderson, Executive Director, Development Department, explained this item indicating that staff needed direction regarding the lease of the property to the police station after the purchase by the Agency. He said that a lease could be made for approximately 52 cents a square foot. Mr. Henderson stated that staff had met with Fred Wilson, Assistant City Adminstrator, and discussed the lease plan indicating that a memorandum was attached referring to the identified costs of the facility. Chairwoman Estrada expressed concern regarding the property that the Agency had acquired located within the parking district. She stated that the parking district assessment costs were being spread throughout other property owners once the Agency purchases or acquires the property. Mayor Holcomb stated that the Agency could make a contribution equivalent to what the assessment would cost. He recommended that the Agency pay the assessment costs for the property it owns. Chairwoman Estrada recommended an item be placed on the next committee agenda regarding property assessment fees. She requested staff identify properties purchased within the parking district and determine the impact it had on private property owners. Discussion ensued regarding the spread of the assessment costs to private owners and also the amount of funds the Agency would pay if they chose to pay assessment costs for the property it owns. Mr. Henderson stated if the committee elected to have the police department make lease payments, staff would provide formal documents for the committee's review and recommendation. Mayor Holcomb felt the Agency would be on safer ground if they elected to have a lease. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoct2 - 2 - OCTOBER 22, 1992 0 Committee Member Reilly indicated that if it would be in the best interest of the Agency and good legal standing, a lease should be done. RECOMMENDATION The Committee recommended that staff be directed to meet with the City Administrator to formulate an agreement and bring it back to the Committee for recommendation. 5. SAN BERNARDINO CHAMEER OF COMMERCE RELOCATION - BAJA BILLIARD CLUB PROPOSAL Chairwoman Estrada showed the Committee Members and staff a video of the Baja Billiards Club in Santa Monica. She indicated that the owners were very interested in opening a billiard club in San Bernardino in the Fuddruckers location. She felt the billiard club would bring people downtown, the Radisson, Isabellas and the Carousel Mall. Mark Edwards, Chamber of Commerce, spoke on his interest in locating to the Fuddruckers building. Kenneth J. Henderson, Executive Director, Development Department, indicated that there was enough room for both organizations to be located in the Fuddruckers building. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that both the first and second floor of the building were available, but the Chamber wished to locate on the first floor. Jim Sharp, Project Manager, Development Department, showed a chart of the facility and the spaces available for lease. He stated that the traffic flow caused by the corner of the building would impact the entire block. Discussion ensued regarding which organization would be better suited in the first floor of the building. James Deskus, Radisson Hotel, felt that it would be more advantegeous if the Chamber of Commerce located there rather than the billiards. Mayor Holcomb expressed concern over the billiards company requesting an upfront commission of 40% which would cover all of its out of pocket expenses. RECOMMENDATION The Committee recommended Baja Billiards come in within thirty (30) days and present its proposal for the building, and that the Chamber also be present at that meeting. REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminoct2 - 3 - OCTOBER 22, 1992 7 Committee Member Reilly recommended that the police department © also be here to hear the proposal. 6. 1992 CLEAN-UP FOR CHRISTMAS PROGRAM Peggy Ducey, Assistant to the City Administrator, stated that this item was related to the 1991 Clean-up for Christmas Program. She indicated that staff was proposing $70,000 for the clean-up program in order to have more organizations involved with the project. She stated that she would like to have the item go before the Commission on November 2, 1993 with clean-up activity beginning on December 5, 1993. Chairwoman Estrada asked the balance of the tax allocation bond proceed funds. Kenneth J. Henderson, Executive Director, Development Department, indicated that the balance was approximately $900,000. He explained to the Committee that there was $45, 000 left over from the clean-up for Christmas program last year; however, at year end, all funds not encumbered by affected projects are placed back into the funds where they were originated. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. Chairwoman Estrada requested that a revised proposal be submitted showing the need for the additional funds. 7. CONCRETE REPAIR AND TREE TRIMMING ACTIVITIES Kenneth J. Henderson, Executive Director, Development Department, indicated that this item referred to broken concrete and tree trimming that is needed within the City, some of which caused slip and fall accidents. Mr. Henderson explained that the Agency could bond against the revenue stream from the golf course to fund this project. Committee Member Reilly expressed concern regarding the liability problems in the City and felt the City should begin repairs as soon as possible. Mr. Henderson stated the total cost of the concrete repairs and tree trimming would be $1.5 million. Mayor Holcomb indicated that the City was liable for citizens being hurt on sidewalks and other City property. Chairwoman Estrada agreed on the need to repair the liability problems in the City and felt staff should identify those areas with a greater need for the repairs. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoct2 - 4 - OCTOBER 22, 1992 Zsq 0 0 Discussion ensued regarding the need to repair concrete versus tree trimming. Chairwoman Estrada requested staff list the cost for tree trimming and concrete repair separately. She also expressed concern over the Agency paying for the City's responsibility. RECOMMENDATION The Committee recommended this item be brought back to the Committee for a second review. 1. WATSON MEDICAL LABORATORIES Kenneth J. Henderson, Executive Director, Development Department, indicated that a request was received from Watson Medical Laboratory to develop a new site that would consolidate Colton and San Bernardino medical offices. Jim Sharp, Project Manager, Development Department, stated that Mr. Bruce Varner, representative for Mr. Paul Watson, approached the Agency with a request for assistance with the development costs of the facility. He stated that Mr. Varner provided the Agency with a detailed cost estimate for the project. Mr. Sharp explained the loan term and deal points presented by Mr. Varner indicating that the borrower would also pay a 1.58 loan origination fee. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 2. CORNERSTONE TOWER - RANCON DISPOSITION AND DEVELOPMENT AGREEMENT DEAL POINTS John Hoeger, Project Manager, Development Department, stated that a proposal had been developed which would require substantial Agency participation, especially with the parking portion. He indicated that in order to make it visible to the community, that the Agency should begin demolition of the building. Mr. Hoeger spoke on the need to make a change in the appearance of the block. He recommended landscaping, street improvements and also the acquisition of Valley Auto. Mr. Hoeger requested a contract be developed with RANCON so that it could convince potential tenants that the Cornerstone Building would actually come about. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoct2 - 5 - OCTOBER 22, 1992 2 • Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that he sat in on meetings with Rod MacDonald, RANCON Development, and spoke with people who wanted to locate to a new facility downtown. He also stated that the staff report included information regarding the process of activities that would need to occur before the building of the cornerstone building. Discussion ensued regarding the type of parking needed for downtown. Suggestions were made regarding paid parking and structured parking. Chairwoman Estrada indicated that the Agency could not fund this project with tax increment. Mr. Hoeger explained that bonds could be secured with tax increment funds for this project. Gene Wood, Consultant, E. H. Wood and Associates, indicated that the cost of the building would be approximately $30 million. He stated once built, the parking lot could be used as collateral to fund the construction costs for the project. Mr. Hoeger explained that the parking would be pending the acquisition of Valley Auto. Mr. Henderson stated that staff needed approval of the approach for this project. He said the current agreement with RANCON would expire on October 31, 1992. Mayor Holcomb stated that RANCON had put substantial planning and money into to this plan. Orr Chairwoman Estrada expressed concern regarding items that she felt were unrealistic in the staff report. Mr. Steinhaus stated that staff had worked very closely with RANCON on this project and he believed it would be a success. Committee Member Maudsley questioned the total cost of the new police station. He indicated that the police station should take priority over the cornerstone building. RECONNENDATION The Committee recommended that Mr. MacDonald respond in writing to the points listed in the staff report and be present at the next Redevelopment Committee meeting to discuss them. 9. ADJOURN TO CLOSED SESSION At 5:30 p.m. the Redevelopment Committee adjourned to closed session to discuss the following: REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoct2 - 6 - OCTOBER 22, 1992 2. (a) Pursuant to Government code Section 54956.8, the Redevelopment Committee of the Development Department of the City of San Bernardino will now convene in Closed Session to s discuss with its negotiator the purchase, sale, exchage or lease of real property and given instructions to its negotiator concerning the price and terms of payment for the purchase, sale, exchange or lease of real property. 10. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 6:00 p.m. to November 5, 1992. APPROVED BY: I Esther Estrada, Chairwoman Redevelopment Committee I 1 REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminoct2 - 7 - OCTOBER 22, 1992 t pREDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING November 5, 1992 4:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:02 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Michael Maudsley. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Stafford W. Parker, Deputy Director, Development Department; Manual Moreno, Director of Public Services; Fred Wilson, Assistant City Administrator; Phil Arvizo, Executive Assistant to the Council; Dennis A. Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Ross Selvidge, Kotin, Regan and Mouchley. 1. OFFER TO PURCHASE 201 NORTH "E" STREET BUILDING Stafford W. Parker, Deputy Director, Development Department, stated this item was referred to the Redevelopment Committee with direction to locate and hire an accountant to analyze the sale of the 201 Building. He said the contract was awarded to Kotin, Regan and Mouchley and that Mr. Selvidge was present to address this item. Mr. Parker stated that the firm had concluded that it would be cheaper to issue bonds on the building rather than sell the building. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnovl - 1 - NOVEMBER 5, 1992 05 4 Ross Selvidge, Kotin, Regan and Mouchley, indicated that an initial analysis was done using the possible types of bond issues that could be utilized versus the offers from Vanir Development. He stated that the approach his firm used in its analysis was to analyze the status quo of holding the building without attracting any funds from the building, assuming gradual lease of the building and also occupation of the third floor to EDA and other non-profit entities. The firm assumed lease rights and cash flow over 20 years. He also stated that two (2) types of bonding were viewed; 1008 tax exempt and also 50/50. Mr. Selvidge stated that his firm determined that the most effective way for the Agency to obtain funds such as $4 - $5 million was through a bond issue rather than the offer from Vanir Development. He stated that this was due to the level of rent Vanir was requesting. Chairwoman Estrada asked if the 201 Building was owned free and clear by the Agency. Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that the Agency did own the building free and clear. Mr. Parker stated that Mr. Dominguez was given a copy of the analysis completed by Kotin, Regan and Mouchey, for his comments. Mr. Selvidge stated that over a 24 year period, the debt service with Vanir Development would be $17 million and with a bond only $10 million. Mr. Parker stated that staff would contact Mr. Dominguez to obtain his comments, and if he chose to withdraw his offer, staff would issue a memorandum to the Council. RECOMMENDATION The Committee recommended this item to the Community Development Commission for consideration. 2. CONCRETE REPAIR AND TREE TRIMMING Stafford W. Parker, Deputy Director, Development Department, briefed the Committee on prior action taken regarding this item. Chairwoman Estrada questioned why the Agency was requesting to leverage the entire amount of funds if it was not needed. Mr. Steinhaus emphasized that it would be cheaper to bond for the total amount available. Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that if the Committee approved this item, staff would solicit for accurate dollar figures for the project. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnovl - 2 - NOVEMBER 5, 1992 Ze o Chairwoman Estrada uestioned the q priority list previously submitted. She indicated that she wanted to ensure that the funds were being utilized properly. Manuel Moreno, Director of Public Services, indicated that some areas of the City were in a higher need of concrete repair and tree trimming than others. He said the cost of tree trimming was approximately $180 per tree and indicated that the concrete repair would be slightly higher. He stated that he did not have a problem if the Committee chose to phase in funds for the project rather than giving him a lump sum. Mr. Moreno stated that it would take approximately 9 months for him to utilize the $1.5 million. RECOMMENDATION The Committee recommended this item be forwarded to the Community Development Commission with the information from Miller and Schroeder regarding bonding attached as back-up information. 3. INFORMATION REPORT: LEASING ACTIVITY AT THRIFTY RETAIL SPACE AT 201 NORTH "E" STREET Stafford W. Parker, Deputy Director, Development Department, stated the Agency had approximately six (6) prospective tenants for the 201 Building. Jim Sharp, Project Manager, Development Department, stated that he met with Baja Billiards and obtained additional information on how its operation would work in the 201 Building. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that staff would work with all the potential tenants and bring back additional information to the Committee within thirty (30) days. RECOMMENDATION The Committee recommended this item be brought back to the Committee in thirty (30) days. 4. FIVE LEVEL PARKING STRUCTURE SECURITY PROGRAM/CONTRACT FOR CONSULTANT SERVICES Stafford W. Parker, Deputy Director, Development Department, indicated that 2 years ago, Main Street worked on this item and it had since been forwarded to the Agency. He stated that Walter and Associates, a consulting firm, was hired to analyze the structure. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnovl - 3 - NOVEMBER 5, 1992 Ze Jim Sharp, Project Manager, Development Department, indicated that various individuals had expressed concern regarding security in the parking structure. He stated that Walter and Associates would review the structure, previous studies and multiple levels of security and design for approximately $6, 500. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. Timothy C. Steinhaus, Administrator, Economic Development Agency, questioned if the Committee would authorize the Agency to proceed with this item since the $6, 500 is under its jurisdiction. The Committee requested this item be placed on the Consent Calendar for the Commission's information. S. COMMENDATION FOR MEMBERS OF THE SOUTH VALLE CITIZEN ADVISORY COMMITTEE AND REQUEST TO DISSOLVE THE COMMITTEE RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. 6. COMMENDATION FOR MEMBERS OF THE TRI-CITY CITIZEN ADVISORY COMMITTEE AND REQ ST TO DISSOLVE THE COMMITTEE RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. NB-1 EMERGENCY RELOCATION FUNDS Dennis A. Barlow, Senior Assistant City Attorney, explained that the relocation fund had been used to help relocate families displaced by code enforcement activities. He stated that there is currently only $4, 000 left in the fund and additional funds were needed to help relocate families that had been displaced due to rain and fires. He requested an additional $10, 000 be added to the fund. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. 7. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnovl - 4 - NOVEMBER 5, 1992 o S. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 4:57 p.m. to November 24, 1992. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnovl - 5 - NOVEMBER 5, 1992 c REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING November 24, 1992 4:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:08 p.m. in the Economic Development Agency Board Room; 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and j Michael Maudsley. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Ann Harris, Executive Director, Main Street; Sue Morales, Assistant to the Agency Administrator; Barbara Lindseth, Manager, Administrative Services, Development Department; Verne Nadeau, Public Works Department; Kelley Jo Poole, Public Works Department; John Wood, Project Manager, Development Department; Peggy Ducey, Assistant to © the City Administrator; Phil Arvizo, Executive Assistant to the Council; Henry Empeno, Deputy City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Tim Sabo, Special Counsel, Sabo and Green; Leon Jordon, Special Counsel, Sabo and Green. 3. "LAVE YOUR CITY" BEAUTIFICATION CAMPAIGN Peggy Ducey, Assistant to the City Administrator, explained that the City Administrator had recommended to the Mayor and Common Council the use of Community Development Block Grant (CDBG) funds for a beautification program. She also recommended the City hire a volunteer coordinator for the program. Ms. Ducey stated that the Mayor had interviewed several individuals for the coordinator position and recommended that Patricia Leathers be hired for a three (3) month trial period at $20 hour. Committee Member Maudsley expressed concern over the cost for the coordinator. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 1 - NOVEMBER 24 , 1992 ZG Lorraine Velarde, Executive Assistant to the Mayor, indicated that a survey had been done regarding a volunteer coordinator, and it was determined that the position would need to be on a full-time basis. ESTHER ESTRADA ARRIVED AT 4:15 P.M. Ms. Ducey discussed other cities reactions toward clean-up programs. Chairwoman Estrada felt current city personnel should be able to handle a clean-up program without hiring an outside coordinator. Committee Member Maudsley agreed, stating that the City had capable employees who should be able to handle this task. Ms. Velarde indicated that this item would allow staff to monitor the position for three (3) months to determine if a full-time person i was needed. She stated that even though the City had capable employees, it would be hard for them to devote 8 hours a day to this project. Chairwoman Estrada recommended staff obtain more information on this item and bring it back to the Committee. Committee Member Reilly felt the program may be more beneficial if someone outside of City Hall was the coordinator. Chairwoman Estrada indicated that she would prefer if someone in house was available to work on this project. © Phil Arvizo, Executive Assistant to the Council, explained that many volunteer programs established throughout the City had worked very well. RECO14MENDATION The Committee recommended staff come up with different options for this program and present them to the Committee at its next meeting. 1. DOWNTOWN PARKING DISTRICT ASSESSMENTS - £DA PROPERTIES Kenneth J. Henderson, Executive Director, Development Department, explained that the Agency had purchased property within the assessment district and was exempt from paying the assessment costs due to being a government entity. He stated that if the Agency paid the accrued assessment of $76,000, that the future assessment on existing properties would be reduced. Verne Nadeau, Public Works Department, stated that the assessment could be paid in a lump sum to reduce future assessments. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 2 - NOVEMBER 24, 1992 0 0 Chairwoman Estrada questioned why the funds could not be paid to the individual property owners. Mr. Nadeau explained that many of the property owners had only owned property in the assessment district for about one year. He stated that the assessment fees change each year and to pay each individual property owner, the City would have to locate previous owners to pay them also. j Discussion ensued regarding the best way to pay the assessment fees. Mr. Nadeau asked if a time-frame could be given for the Agency to pay the assessments. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated the Agency would pay the accrued assessment of $76,000 now, and budget for the $26,000 in the July 1, 1993 budget. RECOMMENDATION The Committee recommended this item be presented to the Community Development Commission for its approval. 2. RE-EXAMINATION OF VANIR'S OFFER TO PURCHASE 201 NORTH "E" STREET BUILDING Kenneth J. Henderson, Executive Director, Development Department, explained this item to the Committee indicating that a letter had been sent to Mr. Dominguez, Vanir Development, providing him with information regarding the analysis completed by Kotin, Regan and Mouchey. He stated that a full report, including Mr. Dominguez's comments would be provided at the December 10, 1993 Committee Meeting. RECOMMENDATION The Committee recommended this item be received and filed. 4. RESTRUCTURING OF THE DOWNTOWN MAIN STREET PROGRAM Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that in September, the Commission adopted several motions which incorporated Main Street into the Economic Development Agency organization. Sue Morales, Assistant to the Agency Administrator, explained that the Main Street Board of Directors instituted Bylaws which become effective January 1, 1993. She said the board would include seven voting members and one non-voting chairman. She stated that the chairman would be the Mayor, and the Secretary would be the director of Main Street. REC-'DLAR MEETING REDEVELOPMENT COMMITTEE Imp:rminnov2 - 3 - NOVEMBER 24, 1992 ZC Q Ms. Morales stated that Main Street would also have an Advisory Board comprised of nine (9) members, all of whom have a direct interest in the downtown area. Chairwoman Estrada questioned how a 5013C could exist when it receives it primary funding from a government agency. Timothy Sabo, Special Counsel, Sabo & Green, explained that a City Council could establish a 5013C and its Board of Directors. He also explained how the funding would be received. Discussion ensued regarding the amending of the Bylaws by the Board of Directors, and the approval by the Commission. Barbara Lindseth, Manager, Administrative Services, Development Department, reviewed the budget for Main Street and explained the figures listed in the report. Chairwoman Estrada requested clarification regarding the savings to the Agency with the merging of Main Street. Ms. Lindseth again explained the revised budget for Hain Street versus the previous budget for Main Street. She stated that a new budget would be prepared in July, 1993. Henry Empeno, Deputy City Attorney, indicated that the Attorney's Office had not yet completed its review of all the resolutions and ordinances for this item. Chairwoman Estrada recommended approving this item based on approval from the City Attorney's Office. Mr. Steinhaus stated that the Commission could elect to choose the Mayor Pro Tem or the Chairman of the Redevelopment Committee to act as the Vice Chairperson for the Main Street Board of Directors rather than choosing another individual. RECOMMENDATION The Committee recommended this item to the Community Development Commission based on findings received from the City Attorney's Office. 5. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 4 - NOVEMBER 24, 1992 ZZ D 6. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 5:05 p.m. to December 10, 1992. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 5 - NOVEMBER 24, 1992 04 - 0 0 REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING January 7, 1993 4 :00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:08 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Michael Maudsley. STAFF PRESENT Kenneth J. Henderson, Executive Director, Development Department; Phil Arvizo, Executive Assistant to the Council; Dennis A. Barlow, Senior Assistant City Attorney; Roger Hardgrave, Director of Public Works; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Mark Edwards, Chamber of Commerce. 1. "LEASING STATUS UPDATE, 201 NORTH "E" STREET Kenneth J. Henderson, Executive Director, Development Department, explained the staff report indicating that it listed five (5) leasing options which had been previously discussed at Redevelopment Committee meetings. Mr. Henderson informed the Committee that Mr. Roberts who submitted the upscale billiard club proposal had signed a lease at 440 west Court Street; therefore his proposal had been withdrawn. Committee Member Maudsley indicated that the building would remain vacant if action was not taken immediately on locating a tenant. Chairwoman Estrada felt the highest and best use for the building would have been the billiards. She regrets they chose another location rather than the 201 building. Mark Edwards, Chamber of Commerce, stated that several individuals had contacted his office regarding leasing the current Chamber location should they relocate to the 201 building. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminjanl - 1 - JANUARY 7, 1993 ZD C RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 2. 507 SOUTH MT. VERNON COMMERCIAL REHABILITATION FEDCO RETENTION ACTIVITY Kenneth J. Henderson, Executive Director, Development Department, explained that a letter was received from FEDCO regarding its concerns about the deterioration of the surrounding area. He stated that staff could accommodate all of its concerns with the exception of underground utilities. He indicated that the cost was excessive. Mr. Henderson stated that this would assist in the clean-up of the entire area, including Taco Tia. Chairwoman Estrada asked the cost for underground utilities. Mr. Henderson stated the cost would be approximately $2 million. Chairwoman Estrada requested clarification regarding the planting of trees in the area. She questioned whether the existing trees would be replaced with Canary Allen Pine Trees. Mr. Henderson explained that he spoke with representatives of FEDCO to discuss what the Agency had done and was willing to do to retain FEDCO at its current location. Committee Member Reilly questioned FEDCO's request to relocate to �J the May Company building. Mr. Henderson explained past conversations with FEDCO and its reasoning for wanting to relocate. He stated that FEDCO planned on moving regardless of whether or not they obtained the May Company Building. He indicated that the improvements requested were only for the surrounding areas and would need to be made regardless of whether FEDCO remained. Chairwoman Estrada asked if an agreement was in place indicating that FEDCO would remain in its present location if area improvements were made. Committee Member Maudsley expressed concern over other property owners not participating in the beautification ro ram. P 4 Discussion ensued regarding the tax revenue generated by FEDCO. RECOMMENDATION The Committee recommended staff obtain information on the replacement of trees, pictures of the northeast corner and also a report on the work being done for Taco Tia, and bring it back to the Committee at its next meeting. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminjanl - 2 - JANUARY 7, 1993 © O 3. PURCHASE OF 578 NORTH MT. VERNON AVENUE Jim Sharp, Project Manager, Development Department, explained that the purchase price should read $98,100 instead of $105, 100. Mr. Sharp indicated that he had been working with Mr. Lopez, owner of the property, regarding the Agency acquiring his facility. He said Mr. Lopez believes it would be in his best interest if the Agency purchased his property. Kenneth J. Henderson, Executive Director, Development Department, stated that an advantage to obtaining this property was the ability to acquire it for below market value. Chairwoman Estrada indicated that the acquisition and demolishing of this building would allow for more opportunity in the area. Discussion ensued regarding the lot and building size of Mr. Lopez' s property. Committee Member Maudsley questioned whether or not the Agency was paying the purchase price or the land price for the property. He recommended obtaining another appraisal on the property using an appraisal firm from San Bernardino. RECOMMENDATION The Committee recommended staff obtain a second appraisal on this property and bring the item back to the Committee at a later date. }` 4. INCREASE OF DEVELOPMENT GAP LOAN FOR CONSTRUCTION OF NEW MEDICAL FACILITIES: WATSON MEDICAL LABORATORIES, INC. Kenneth J. Henderson, Executive Director, Development Department, explained this item to the Committee indicating it would assist in to relocating the medical offices to a new facility. He stated that the Commission had previously approved a loan for this facility. Mr. Henderson stated that after approval from the Commission on this item, a letter was received from Watson Medical indicating that there was a need to increase the loan amount request from $125, 000 to $250, 000. Jim Sharp, Project Manager, Development Department, explained that the bank would provide Watson Medical with $1.5 million and they would invest $416, 000 of their own funds. He explained the increase in the loan amount was due to the architects not estimating the total cost for fees. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminjanl - 3 - JANUARY 7, 1993 2� 0 C 5. DEMOLITION OF EXISTING RESTAURANT IMPROVEMENTS LOCATED IN THE FORMER FUDDRUCXER'S SPACE © Jim Sharp, Project Manager, Development Department, explained this item indicating that the firm would demolish all existing restaurant equipment in the building. He stated that staff had solicited bids for the salvage of the equipment, but since the equipment was damaged and no longer any good, no bids were received. RECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. 6. 5055 HALLMARK PARKWAY - CODE IMPROVEMENT Kenneth J. Henderson, Executive Director, Development Department, stated that there were two prospects interested in leasing this building, but code improvements needed to be completed before anyone could locate to the facility. He explained that the funds for the improvements would not be expended until the lease was made. Jim Sharp, Project Manager, Development Department, indicated that one of the prospects for the building was a light manufacturer for trailers. Discussion ensued regarding the requirements for the facility due to the age of the building. ORECOMMENDATION The Committee recommended this item for approval to the Community Development Commission. S-1 SUPPLEMENTAL FUNDING FOR CEMETERY EXPANSION Roger Hardgrave, Director of Public Works, explained that additional funds were needed to complete additional expansion activities. He requested a total amount of $120,000 for the Phase I financing. Mr. Hardgrave explained previous activities completed at the cemetery site and also the funding amounts approved by the Commission. RECOMMENDATIONi The Committee recommended this item for approval to the Community Development Commission. s-2. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminjanl - 4 - JANUARY 7, 1993 L 06 0 S-3. ADJOURNMENT � - There being no further business, the meeting of the Redevelopment Committee was adjourned at 5:17 p.m. to January 19, 1993. APPROVED BY: Esther Estrada, C airwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminjanl - 5 - JANUARY 7, 1993 � 1 W REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING January 14, 1993 4:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:10 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Michael Maudsley. STAFF PRESENT Kenneth J. Henderson, Executive Director, Development Department; Phil Arvizo, Executive Assistant to the Council; Dennis A. Barlow, Senior Assistant City Attorney; David Edgar, Manager, Housing Division, Development Department; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE l None. 2. LANDSCAPING OF OLD NAUGLES RESTAURANT Kenneth J. Henderson, Executive Director, Development Department, explained that this item was structured similar to the FEDCO Agreement. Committee Member Reilly asked questions regarding the 50/50 program and the facade program. He also questioned the terms of the agreement for the Naugles Restaurant. Mr. Henderson discussed the project and also the guidelines for the project. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. REGULAR MEETING REDEVELOPMENT COMMITTEE ' 1mp:rminjan2 - 1 - JANUARY 14, 1993 Zc ' 1. AGREEMENT FOR PROFESSIONAL SERVICES - ARDEN GUTHRIE FOCUS NEIGHBORHOOD Ke-nneth J. Henderson, Executive Director, Development Department, indicated that this item was reviewed at the Community Development commission and was referred to the Redevelopment Committee for review. Dennis A. Barlow, Senior Assistant City Attorney, indicated that the Attorney's Office did not have an answer as to whether or not this item would have an affect on the lawsuit. He stated that a response would be available by the next Commission Meeting. Chairwoman Estrada discussed previous activity regarding the Arden Guthrie area, the funds used for those activities, and also the hiring of a consultant to due similar work as proposed in this item. She questioned if the previous studies completed by that consultant would be used as a comparison for this proposed study. Mr. Henderson indicated that the previous agreement was with Judy Lenthal for $98,000. He stated that her activities as a consultant included preparation of plans and various workshops. He also indicated that her initial estimate for the completion of the Focus Neighborhood was $2 - $4 million. However, after several workshops, the estimated cost increased to $7 - $14 million. Discussion ensued regarding the similarities of the Montclair Focus Neighborhood proposal and the one Ms. Lenthal prepared for San Bernardino. Committee Member Maudsley spoke on the work done by L. D. King in Montclair and its success. He felt the Agency should contact that firm for assistance. Mr. Henderson stated that the social problems of Arden Guthrie have to be addressed as well as the actual rehabilitation. David Edgar, Manager, Housing Division, Development Department, indicated that several people were ready to begin implementing a plan immediately. He stated that there were currently six (6) acres of land available that could be used to create a park for the youth and a community center for neighborhood meetings. Chairwoman Estrada questioned whether or not Councilwoman Miller had seen the plan. Mr. Henderson indicated that she had briefly reviewed the plan. Mr. Barlow informed the Committee that by speaking to Councilwoman Miller regarding this item, they could violate the Brown Act because a majority of the Council would have reviewed this item before presentation to the Commission. Committee Member Reilly volunteered to excuse himself from the meeting in order to eliminate the possibility of a violation. REGULAR MEETING REDEVELOPMENT COWITTEE lmp:rminjan2 - 2 - JANUARY 14, 1993 COMMITTEE MEMBER REILLY LEFT AT 4:36 P.M. Mr. Edgar stated that staff had located a four-plex in the neighborhood that could be used as a health clinic for the community, a police substation and also a location for project managers. He said that staff also had plans to cul-de-sac three (3) streets and establish green belt areas. He indicated that the area owned by Cal- Trans could be leased by the Agency for a dollar a year. Mr. Henderson stated that the police felt the cul-de-saced streets would help in managing the area. Mr. Edgar discussed the acquisition of boarded up buildings and the ability staff would have in screening tenants and completing neighborhood improvements. He felt that the neighborhood could be under control within 6 to 18 months. He also indicated that Los Padrinos would provide monthly clean-up for the area. Chairwoman Estrada felt the property owners should be responsible for their own clean-up. Mr. Edgar explained that Homeward Bound Ministries was interested in purchasing some of the buildings in the area for rehabilitation. He stated that it had been active in the Inland Empire for 8 - 10 years. Mr. Edgar indicated that tenant screening and upscaling the neighborhood would indicate to property owners that the City was showing interest in the property. Chairwoman Estrada asked the cost of the park. Mr. Henderson indicated that the cost was approximately $450,000 to purchase the property with a total cost of approximately $2.5 million for the park. He also discussed other costs such as unit rehabilitation, Los Padrinos clean-up, project managers and street improvements. He said the estimated total cost to complete the entire project would be about $7 - $9 million. Chairwoman Estrada questioned where the funds would come from to fund this project. Mr. Henderson stated that staff would be prepared to answer all financing questions at a later date. He mentioned briefly that 208 set aside funds as well as IVDA 20% set-aside funds would be considered. Mr. Edgar explained Mr. Frank DeVries' position regarding the rehabilitation project indicating that his task was to meet with the various departments and outside agencies for their input and assistance. He stated that he also prepared work write-ups and would complete building inspections. REGULAR MEETING REDEVELOPMENT COMMITTEE 16: lmp:rminjan2 - 3 - JANUARY 14, 1993 ac Committee Member Maudsley recommended staff speak with the L. D. King consultants before any commitments are made in reference to the neighborhood. He also recommended that a plan be developed in which the density of the area could be reduced and that the existing property owners bear responsibility of keeping up their own property. Discussion ensued regarding the rehabilation of the neighborhood versus demolishing the entire neighborhood. Chairwoman Estrada requested staff develop a plan in which the entire neighborhood would be rehabilitated. Committee Member Maudsley felt the surrounding area property owners would be concerned over gang member working in their area. Chairwoman Estrada recommended staff invite Mr. King to the next Committee Meeting to speak with him and have him answer questions regarding this project. Discussion ensued regarding the benefit of this project and the ability to make it a success. RECOMMENDATION The Committee recommended that Councilman Maudsley and Councilwoman Miller possibly meet with L. D. King to discuss the Focus III Neighborhood Project. r 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 i Committee was adjourned at 5:45 p.m. to February 4, 1993. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminjan2 - 4 - JANUARY 14, 1993 06 • REDEVELOPMENT OCK4ITTEE M I N U T E S REGULAR MEETING February 4, 1993 4:00 P.M. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:11 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL. Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Michael Maudsley. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Dennis A. Barlow, Senior Assistant City Attorney; Barbara Lindseth, Manager, Administrative Services, Development Department; John Hoeger, Project Manager, Development Department; La Vonda Pearson, Recording Secretary, Development Department. �+ OTHERS IN ATTENDANCE Al Steward, Schneider Commercial Realty; Jack Kelly, Schneider Commercial Realty; Spencer Brown, Tri-City Services; Neal Webster, owner of Naugles Restaurant. 1. LANDSCAPING OF OLD NAUGLES RESTAURANT Kenneth J. Henderson, Executive Director, Development Department, stated that this item had been reviewed by the Committee, the Commission, and was referred back to the Committee to determine financial need. He stated that Mr. Neal Webster, owner of the Naugles Restaurant was present to answer any questions. Mr. Henderson explained that a letter from Mr. Webster was attached which listed the cost to re-open the facility. He also spoke on the difficulty to market and obtain funding for a restaurant. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the property was not located in a 50/50 landscaping area. He also stated that once the restaurant was re-opened, it would not only clean-up a blighted area, but also bring jobs to the area. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminfebl - 1 - FEBRUARY 4, 1993 ZF OAWN Saw Chairwoman Estrada indicated that she wanted to ensure that all council concerns were addressed and resolved. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 2. SOUTHEAST INDUSTRIAL PARK BOND ISSUE REFUNDING Barbara Lindseth, Manager, Administrative Services, Development Department, explained that the Agency had two older bond issues from 1981 and 1985 that could be refinanced at lower rates. She estimated a savings of approximately $200,000 a year if the refinancing was done, and that the savings would be visible within a year. Kenneth J. Henderson, Executive Director, Development Department, explained that the maturity date for the bonds would remain the same. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 3. STEWARD OWNER PARTICIPATION AGREEMENT - 570 WEST FOURTH STREET Kenneth J. Henderson, Executive Director, Development Department, . explained that this item was previously presented to the Committee by Mr. Mark Kaufman in which the Committee chose to deny his request for assistance. He stated that Mr. Al Steward was interested in acquiring the building, and that a new agreement would be established. John Hoeger, Project Manager, Development Department, explained that the building would be sold in foreclosure for approximately $1.5 million, and that tenant improvements would be made before the sale. Mr. Hoeger explained the term and agreements for a loan to Mr. Steward in an amount of $350,000 to assist him in the acquisition and maintenance of the building. Al Steward, Schneider Commercial Realty, explained that he had located enough tenants to completely fill the building. He indicated that the tenants included Concord School and Cross Colors Retail. Mr. Hoeger stated that staff originally discussed a partnership agreement with Mr. Steward, but after legal counsel reviewed the request, they indicated that a partnership approach would not be feasible for the Agency. Mr. Steward explained the net worth of the building in his view and indicated that after the building was filled and in operation, he planned to sell it within 2 years. (- REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminfebl - 2 - FEBRUARY 4, 1993 2F o a Mr. Hoeger indicated that the building was worth approximately $1 .8 million in a bad market, $2 - $2.2 million in a good market. He also indicated that approximately $300, 000 was needed in tenant improvements that would be completed by the bank. Chairwoman Estrada questioned the difference between the Kaufman request and the Steward request. Mr. Hoeger explained that Mr. Kaufman's request would have allowed the Agency to place funds in a project that would be seriously over encumbered. Mr. Henderson also added that Mr. Kaufman did not have full tenant occupancy. Discussion ensued regarding parking concerns of this building as well as the Department of Public Social Services (DPSS) and the Social Security Building. Committee Member Maudsley questioned the parking behind the California Theater and if it was City parking. Mr. Hoeger indicated that the parking lot behind the theater did belong to the City. Committee Member Maudsley expressed concern regarding the parking problem and questioned the intent to bring more people to the area with no additional parking for them to use. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Agency was currently working on the Miller property and the Ritz Theater property for parking which would add approximately 120 spaces for downtown parking. Committee Member Reilly spoke on the necessity to obtain more parking in the downtown area. Mr. Henderson indicated that staff felt the need to have commercial activity downtown was more important then the parking issue, however, staff would address all concerns expressed by the Committee. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission on a 2-1 vote. 4. INVESTMENT POLICY Kenneth J. Henderson, Executive Director, Development Department, explained that the government code required the Commission to annually approve the Investment Policy for the Development Department. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminfebl - 3 - FEBRUARY 4, 1993 ZF G 0 RECOMMENDATION ( ' The Committee recommended approval of this item to the Community Development Commission. CHAIRWOMAN ESTRADA LEFT AT 4:44 P.M. NB-1 LASER PRINTER FOR THE COUNCIL OFFICE Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that this item was to approve the purchase of a new laser printer for the Council Office. Phil Arvizo, Executive Assistant to the Council, indicated that the current printer in the Council Office had cost approximately $1800 to maintain. RECOMMENDATION The Committee recommended approval of this item 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 4 :55 p.m. to February 18, 1993. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE 1 lmp:rminfebl - 4 - FEBRUARY 4, 1993 ZF