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Home My WebLink About06- 03- Redevelopment Agency DE "' EL0 P M E N T DE PAR TN NT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: LANDSCAPING OF OLD Executive Director NAUGLES RESTAURANT Date: February 10, 1993 ------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On January 14, 1993, the Redevelopment Committee considered the request and recommended that the Community Development Commission approve financial assistance for the landscape improvements in the amount of fifty percent (50%), not to exceed $12,000. At its meeting on January 20, 1993, the Community Development Commission considered the project and directed the Redevelopment Committee to review the above-referenced request and elaborate upon the developer's and project's need for Agency assistance. On February 4, 1993, the Redevelopment Committee explored the developer's and project's need for Agency assistance and once again recommended that the Community Development Commission approve funding. ------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve funding fifty percent of the landscape improvements, not to exceed $12,000, for the Old Naugles Restaurant property located on the southwest corner of Lincoln and Highland Avenue at 1033 West Highland Avenue and authorize the Chairman and Executive Directo develop and execute agreements accords I Adm nistrator KEFcuTLv J. HENDERS Ex e Director ------------------------------------------------------------------------------- Contact Person(s): Kenneth Henderson/Doris A. Daniels Phone: 5081 Project Area(s): None Ward(s): Five (5) Supporting Data Attached: Staff Report - Memorandum from Developer dtd 1/27/93 FUNDING REQUIREMENTS: Amount: $12,000 Source: Bond Proceeds Budget Authority: Requested ------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- KJH:DAD: :0437q COMMISSION MEETING AGENDA Meeting Date: 02/15/1993 Agenda Item Number: r • D E V E L O P M E N T D E P A R T M E N T OF THE CITY OF SAN BERNARDINO STAFF REPORT LANDSCAPING OF OLD NAUGLES RESTAURANT In December, 1992, the City received a request from Mr. Neal Webster, the owner of the old Naugles Restaurant, to assist in eliminating the blight caused by a dilapidated building that has been vacant more than one year. Mr Webster requested assistance to install landscape improvements on the property located on the southwest corner of Lincoln and Highland Avenue at 1033 West Highland Avenue. The property is directly adjacent to the Northwest Redevelopment Project Area. Mr. Webster indicated that he has successfully completed negotiations with Alberto's Restaurant to rent his facility. It is anticipated that ` 35 - 50 employees will be hired upon occupancy. Paradoxically, monies cannot be borrowed, according to Mr. Webster, until tenant occupancy. This situation and his marginal funds have created a cash flow difficulty that jeopardizes successful consummation of the project. On January 14, 1993, the Redevelopment Committee considered the request and recommended that the Community Development Commission approve financial assistance for the landscape improvements in the amount of fifty percent (50%), not to exceed $12,000. Mr. Webster has provided bids verifying the reliability of this figure. At its meeting on January 20, 1993, the Community Development Commission considered the project and directed the Redevelopment Committee to review the above-referenced request and elaborate upon the developer's and project's need for Agency assistance. At its meeting on February 4, 1993, the Redevelopment Committee explored the developer's and project's need for Agency assistance and unanimously recommended that the Community Development Commission approve funding. Staff has discussed the Commission's direction with Mr. Webster. Per the attached letter, the client's demonstration of financial need includes the following: 1) The restaurant has not been rented since July, 1991. The vacancy creates a financial hardship for Mr. Webster and a void in City jobs and sales taxes. 2) Mr. Webster has limited income and cannot borrow on the property until it has been repaired and reopened. Such action will also remove unsightly graffiti and deter it from recurring. ------------------------------------------------------------------------------- KJH:DAD: :0437q COMMISSION MEETING AGENDA iL Meeting Date: 02/15/1993 Agenda Item Number: 6— I DEVELOPMENT DEPARTMENT STAFF REPORT RE: LANDSCAPING OF OLD HAUGLES RESTAURANT February 10, 1993 Page Number -2- 3) Mr. Webster will have to spend approximately $71,000 to comply with City requirements to re-open the business. This hefty outlay of cash, coupled with the inability to borrow funds, creates a significant economic hardship and development impasse. 4) The project is not eligible for the 50/50 Landscape Program because the improvements are required in conjunction with a Development Permit. This ineligibility creates a problem because the developer needs Agency participation for the project to be completed. It is also important to note real estate loans for restaurant enterprises are difficult, if not impossible, to acquire. This fact has been independently corroborated on more than one occasion by Gene Wood, the Agency's financial consultant. Staff recommends adoption of the form motion. KENNETH . HENDERSON, Executive Director Develgl5ment Department Attachment: Letter from Developer dated 1/27/93 --------------------------------------------------------------------------- KJH:DAD: :0437q COMMISSION MEETING AGENDA Meeting Date: 02/15/1993 Agenda Item Number: ` •`" s AL PAGE 81 January 27, 1993 Doris A. Daniels FAX NUMBER. . . .909/384-5434 Economic Development Agency City of San Bernardino 201 N. R St. , San Bernardino, CA 92401 Reference: Development permit (DPI) No. 92-477 Remodel existing Naugles Fast Food Restaurant Dear Ms. Daniels, I am requesting help on this project because it is working an economic hardship on me for the following reasons: 1. This restaurant was closed in July 1991 by Naugle*. I have been unable to rent it since that time. I'M-can't even borrow Money on the property since t have no tenant and because the building always has graffiti all over the outside walls because it is vAcant. The City keeps painting the walls, but without success, since the graffiti keeps returning. 2. I am retired and this is the principal part of my Income aside from any social security check. 3. In order to comply with the requirements of the city of San Bernardino to re-open for business, I as going to have to spend the following, which I don't have and can only obtain if I can get It re-opened and rented. A. Landscape do Sprinkling ayateme 3 20,000.00 B. 400 Ft. New Planter curbs 9,400.00 C. Repaint building 21000.00 D. Repair vandalized roof 29600.00 H. Vandalized flood liter, replace 4900D.00 F. Vandalised Air Conditioning system 17 500.00 0. Patch and Beal parking lot 3,000.00 H. Install directional signs 11500.00 I. Install Sign faces 4,500.00 J. Install Drive Thru communications 1,500.00 K. Install restaurant equipment 8,500.00 L. Clean A Repaint interior of building 21800.00 r-----y m Total 70P900.00 Please help me financially so I can Clean up this area and get a business going again. We hope to hire between 35 and 50 people. Yours truly, w-Ae� (4/4 Neal Webster, Property Owner 36. Creata Verde, Rancho Mirage, CA 619/770-0265