HomeMy WebLinkAboutS03- City Attorney CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: John F. Wilson, Sr. Asst. City Attorney Subject: Request for Status Report on ectlon
108 Loan Guarantee Application for
Dept: City Attorney Maya Cinemas North America, Inc.
Date: September 2, 2009
Synopsis of Previous Council action:
On December 15, 2008 the Mayor and Common Council adopted Resolution No. 2008-460, a"Resolution of the
Mayor and Common Council of the City of San Bernardino Consenting to the Disposition of Certain Real Property by
the Redevelopment Agency of the City of San Bernardino("Agency")to Maya Cinemas North America, Inc.
("Developer")(450 North`B" Street- APN: 0134-131-24, 25, 26, 27, and 28) (Central City North Redevelopment
Project Area)."
On April 6, 2009, the Mayor and Common Council adopted Resolution No. 2009-78, a"Resolution of the Mayor and
Common Council of the City of San Bernardino Approving and Authorizing 1) The submittal of the Section 108 Loan
Guarantee Application for Maya Cinemas North America, Inc. To the U.S. Department of Housing and Urban
Development and 2)the Mayor to Execute such Documents as may be Required to Submit and Implement the
Application(Maya Theater Project)(Central City North Redevelopment Project Area)."
Recommended motion:
That the Redevelopment Agency be requested to report to the City Council on the present status of the HUD 108
Loan application for the Maya Theater Project.
pP Y ]
Signature
Contact person: John F. Wilson, Sr. Asst. City Attomev Phone: 384-5355
Supporting data attached: Staff Report Ward: First Ward
FUNDING REQUIREMENTS: Amount: N/A
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
FAWI SONTDMHUD 108 status.RegComci1Action.wpd Agenda Item No. 3
STAFF REPORT
Council Meeting Date: September 8, 2009
TO: Mayor and Common Council
FROM: John F. Wilson, Sr. Asst. City Attorney
DATE: September 3, 2009
AGENDA ITEM: Request for Status Report on Section 108 Loan Guarantee Application for
Maya Cinemas North America
By its action of April 7, 2009, the City Council approved submission of an application to
obtain a new HUD 108 Loan in the amount of$9 million for rehabilitation and upgrades to the 20-
plex through Maya Cinemas North America. The amount then outstanding on the City's HUD-108
Loan was $4.6 million. It was projected that the current HUD-108 loan would be paid off from
funds received by the new HUD-108 Loan. By report to the Redevelopment Committee and a report
appearing in the San Bernardino Sun on or about August 25, 2009, it appears that the transaction
cannot go forward at this time in the manner contemplated by the City Council.
This project involves a risk to the receipt of CDBG funds in the future by the City. Also,the
agreement between Maya Cinema and the RDA has undergone a substantial change since its
inception with respect to the source of funds for the agreed upon improvements to the 20-plex and
the timing of such improvements. These changes impact the City. Additionally, the City, and not
the Agency,is the party in interest with respect to the making of the loan. Any information received
from HUD regarding the progress of the City's application should be immediately communicated
to the City Council to facilitate a timely assessment of circumstances on their part. It is for these
reasons that it is requested that the Agency be requested to timely advise the City Council on the
present status of the City's HUD-108 Loan application.
FAWIlSONTI)M UD 108 status.StaffReport.wpd