HomeMy WebLinkAbout07- Comminity Development D E V K L O P M E N T D E P A R T M E A T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: INCREASE IN DEVELOPMENT
Executive Director GAP LOAN FOR NEW MEDICAL
FACILITIES: WATSON MEDICAL
LABORATORIES, INC.
Date: January 8, 1992
--------------------------
Synopsis of Previous Commission/Council/Committee Action(s):
On January 7, 1993 the Redevelopment Committee recommended to the
Community Development Commission approval of an increase in the Watson
Medical Laboratories "gap" loan from $125,000 to $250,000 for the
construction of a new medical services facility located at 4835 North
Hallmark Parkway.
-------------------------------------------------------------------------------
Recommended Motion(s);
Community Development Commission)
MOTION: That the Community Development Commission authorize the
Executive Director to execute documents increasing the
previously approved development "gap" loan from $125,000
to $250,000 for the construction of a medical services
building located at 4835 North Hallmark Parkway.
�.L 4M
Administrator KE J. HE ERSON
Executive Dir ctor
-------------------------------------------------------------------------------
Contact Person(s): Ken Henderson/James Sharp Phone: 5081
Project Area(s): State College (SC) Ward(s): Five (5)
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $ 125,000 Source: Tax Increment
Budget Authority: Requested
--------------------------------------------------------------------------------
Commission/Council Notes:
---------------------------------------------------------------------------
KJH:JWS:mkc:2784J COMMISSION MEETING AGENDA
Meeting Date: 1/11/1993
Agenda Item Number:
D E V b L O P M E N T D E P A Y T M a N T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
INCREASE OF DEVELOPMENT GAP LOAN FOR
WATSON MEDICAL LABORATORIES, INC
On November 2, 1992, the Community Development Commission approved a
Development "Gap Loan" in the amount of $125,000 to Mr. Paul Watson of
Watson Medical Laboratories, Inc. , for the construction of a new
medical services building to be located at 4835 North Hallmark Parkway
and authorized the Chairman and Executive Director to develop and
execute the appropriate contractual loan agreement.
During and subsequent to the Commission's approval, the client
consummated the processing and payment of all fees and permits for the
subject development. Upon the completion of the process, the client
was notified by his architect of the total cost of project and
City-related fees (see Exhibit "A"). Mr. Watson, through his counsel,
has discussed with the Agency on several occasions its potential
ability to have development fees waived by the City. It is not
possible for the Agency to waive any City Water Department fees, nor is
the waiving of such fees a part of the staff recommendation. Upon
review of the total cost of City-related fees in the amount
$121,999.30, Mr. Watson found it urgent and necessary to request an
increase of his loan amount originally approved by the Agency.
Staff has reviewed Mr. Watson's previous request and has concurred with
his development pro forma. In addition, staff has reviewed the
documents as presented by Mr. Bruce Varner of Gresham, Varner, Savage,
Nolan and Tilden, who represents Mr. Watson in his legal matters.
Included in Exhibit "A" is the compilation of appropriate costs which
have been paid prior to the issuance of building permits. Staff agrees
that the fees provided are "bona fide" to the development.
As previously reported to the Committee and Commission, the Agency will
enjoy an increased tax increment benefit of $21,050 annually (of which
$4,210 would go to the Housing Fund) and the City will benefit by the
creation of fifty (50) new jobs in the local work force.
On January 7, 1993 the Redevelopment Committee recommended to the
Community Development Commission an increase in the previously approved
development "gap" loan from $125,000 to $250,000 for the
KJH:JWS:mkc:2784)
COMMISSION MEETING AGENDA
Meeting Date: 1/11/1993
Agenda Item Number:
DEVELOPMENT DEPARTMENT ,jAFF REPORT
Increase in Development Gap Loan
January 8, 1992
Page Number —2—
construction of a new medical services facility located at 4835 North
Hallmark Parkway.
In conclusion, staff recommends that the previously approved loan be
increased under the same terms and conditions from $125,000 to $250,000
to cover the relative deficient equity of the borrower's funds.
Staff recommends adoption of the form motion.
KKENNETk J. HkKDERSON, Executive Director
Development Department
-------------------------------------------------------------------
KJH:JWS:mkc:2784J COMMISSION MEETING AGENDA
Meeting Date: 1/11/1993
Agenda Item Number: _ __
Exhibit I to Agenda Item #7
January 11 , 1993 Community Development Commission
Exhibit "A" 0
C�41
PAUL D. IN sYDNIa A. WATSON
RATBOV XZDYCAL LABORATORY BUILDING
Land Cost ( Actual) $ 290,000.00
Building Cost ( Actual) 11350,000.00
Tenant Improvements 465,000.00
Total structure Cost $ 2rI05 000.00
Amount to be Financed ( Bank indicates 754) 11560,000.00
Cash Required - Structure $ 525,000.00
Outlay to Date 400,000.00
--------------
Additional cash Required $ 1261000.00
Monthly Cost of $1. 560 Million
20 Year amortization 1 10. 5% $ 15,775.00
Taxes ($2, 105,000 xl.25t / 12)
utilities l
01-640 i ($Opus TI's .465 = $2, 105x) 21200.00
per sq. !t. ) 31000.00
------Yip------
Projected raw monthly Cost 20,974.00
Compared to Current Monthly Costs
San Bernardino 8,490.00
Colton 6,463.00 141953.00
----------- --------------
Projected Increase, in Monthly Cost ` 48022.00
1 of 2
V
/t
Pi . K
Exhibit A"
Watson Medical Laboratory Building
State College Project Area
City Related Fees
Soils Southwest 400.00 Soils Test
Burch Meress Associates 600.00 Landscape Plan
City of San Bernardino 1, 729.00 Preliminary
Plan Check
Brown & Mullins 4 , 242 .00 Grading Plan
Brown & Mullins 324 . 00 Grading Plan
Soils Southwest 1,400.00 Civil Eng. ,Soil
Burch Meress Associates 1, 425.00 Landscape Plan
City of San Bernardino 4, 133 .00 Fees & Permits
City of San Bernardino 3, 075. 00 Fees & Permits
Brown & Mullins 1, 201.50 Grading Plan
K & S Fire Sprinklers 2,875.00 Engineering -
City Fire
City of San Bernardino 302 .86 Fees & Permits
Brown & Mullins 1, 641.70 Grading Plan
City of San Bernardino 1, 463.75 Fees & Permits
City of San Bernardino 1, 846.49 Plan Check
City of San Bernardino 21, 593 .40 Water Rights
S.B. Unified School Dist. 5, 325. 21 School Fees
City of San Bernardino 27,855. 18 Building Permit
Brown & Mullins 348.42 Civil Engineering
40, 217.80 Water Dept. Fees;
Charges & Deposit
TOTAL $121, 999. 31
2 of 2
1�