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HomeMy WebLinkAbout02- RDA Minutes 0 REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING August 19, 1993 3:00 p.m. The regular meeting of the Redevelopment Committee was called to Valerie Pope-Ludlam "Street, in the Economic California. San Bernardino, ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam and Committee Members Edward Negrete and Ralph Hernandez. Mayor Tom Minor was also in attendance. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Barbara Lindseth, Administrative Services Division Manager, Development Department; Richard Morillo, Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to the Council; Lorraine welarde, Executive Assistant to the Mayor; Al Boughey, Director of Planning and Building Services; Sandi Paulsen, Planning and Building t Services; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo & Green, Gene and Associates; Frances Mayse, CK Properties; Patricia Grdeen,. Van r Development; Sam Catalano, Carousel Mall. ITEM NOT ON THE AGENDA CIVIC LIGHT OPERA i i Mayor Minor stated that this was an urgency item regarding the financial status of the Civic Light Opera. He informed the Committee that the CLO was in heavy financial debt and it requested a short-term loan in the amount of $200, 000 in order to prepare for the upcoming season. Mayor Minor felt the CLO was of great importance to the city of San Bernardino. He felt it was the city's Performing Arts Theater. He recommended a short-term loan be granted to the CLO for 90 days. He stated if the loan was not repaid in 90 days, that the theater become collateral for the loan. REGULAR MEETING lmp:rminaug2 _ 1 - REDEVELOPMENT COMMITTEE AUGUST 19, 1993 Committee Member Negrete made a motion, seconded by Committee Member Hernandez that this item arose after the posting of the Agenda. The motion carried by the following vote: Ayes: Chairwoman Valerie Pope-Ludlam; Committee Members Edward Negrete; Ralph Hernandez. Timothy Sabo, Special Counsel, Sabo & Green explained the request by the CLO indicating that it was a loan with a short timeframe. Committee Member Hernandez indicated that maybe this request would help resolve the differences between the CLO and the Symphony. Mayor Minor felt this was the first step in bringing harmony between the two groups. Chairwoman Pope-Ludlam asked if a special Commission Meeting was needed in order to finance the loan before a set deadline. item. Mayor Minor stated that no special meeting was needed for this Gene Wood, E. H. Wood and Associates, informed the Committee that the President of the CLO, Mr. Jenks, resigned after 52 years of service. He also explained that the members of the CLO had been working diligently to help keep its finances together. He stated that funds were needed in order to host its opening show on August 30. Mr. Wood indicated that the CLO and Symphony Board Members were in agreement and willing to work together; however, the General Managers of both organizations still had differences to settle. Mayor Minor agreed, indicating that he had met with several of the board members and they were all in agreement during discussions. RECOMMLIMATION The Committee recommended this item for approval to the Community Development Commission. 1. UNIVERSITY VILLAGE Kenneth J. Henderson, Executive Director, Development Department, stated that the Committee and Commission had previously discussed the proposal by Camden Development regarding a shopping center in the State College Area. Mr. Henderson stated that Camden Development was requesting $1.1 million dollars in assistance plus an additional $250,000 required to complete the project. He emphasized that this project would create jobs and also be on the tax roll. He said that tenants such as Mc Donalds, International House of Pancakes, Texaco and a Day Care Center had already signed leases for locations in the center. REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminaug2 - 2 - AUGUST 19, 1993 • Timothy C. Steinhaus, Administrator, Economic Development Agency, spoke on the benefit of the project to the community emphasizing the 400 jobs created by the project. Chairwoman Pope-Ludlam questioned the amount of dirt on the hill that needed to be moved. Ari Miller, Camden Development, indicated that nearly 120, 000 cubic yards of dirt needed to be moved from the hill. He explained that it would be approximately 8000 truck-loads of dirt. Committee Member Hernandez asked staff if the State would be requesting any funds from the Agency to help offset its budget deficit. Barbara Lindseth, Administrative Services Division Manager, Development Department, stated that the State would be requesting approximately $700,000 a year which was currently not accounted for in the budget. Mayor Minor recommended that instead of using the funding Proposed for the police facility at the budget meeting, aside from the $2 million allocated for the facility, that tax exempt bonds on $8 million dollars to be repaid over 25 years at approximately $700, 000 a year be used. He stated that the first 2 years would be a free ride. He indicated that with the $8 million bonded and the $2 million dollars already allocated, it would give the city a total of $10 million to finance the building for the police department. He said if it comes in less than $10 million, the money left over from the bonding would go back and reduce the amount that had to be paid back each year on the bond. On the third year, when the bond payments became due at $700,000 a year, there would be a gamble as to what kind of economic shape the city was in to make those payments. He stated that economists expect the economy to start improving in 2 years which should reach the city by the third year when the $700,000 yearly payments would be due. He proposed that by freeing up the money Proposed for the facility and putting it back into the original Projects we have, we would add to the money coming to the city through a tax base that would help start paying that money back in three years. He also informed the committee that the city received very good news from the U.S. Air Force on the base closure and the amount of acreage available to operate the airport. He also spoke on benefits that could occur regarding Santa Fe and J. B. Hunt Trucking Company. He felt that in three (3) years, the city Would be able to repay the $700,000 and that in the event the city could not repay the funds, it could come to the Agency for refinancing. Mr. Henderson asked the Mayor if it was his representation that when the payments were due the third year, that the payments be made by the City and not the Agency. Mayor Minor stated yes, that was his plan. REGULAR MEETING REDEVELOPMENT COMMITTEE leap:rminaug2 3 - AUGUST 19, 1993 �/1 Discussion ensued regarding the request to cosplete a survey downtown to identify the economic impact to the City of San Bernardino as a result of the new development in the area. Mayor Minor indicated that because he was been concerned about the lack of funding available for new developments after the funds were allocated to the police facility, he came up with this proposal. He stated that he had reviewed his proposal with Mr. Sabo. Committee Member Hernandez expressed concern regarding the new state building located downtown not being on the tax roll. Timothy Sabo, Special Counsel, Sabo and Green, explained that the benefit to the downtown area would be the amount of people brought to the downtown area by the building. Discussion ensued regarding the stability of the downtown area. Mr. Henderson stated that the public improvements with the hill was a total cost of $1.1 million with a gap loan request of $250, 000. He stated that legally, the Agency could look at financing the offsite improvement costs with bond proceeds. Mr. Miller stated that his initial request for $2 million was based on a financial impact report. He said that now the assistance request was brought down to a bare minimum. He also spoke on the benefit of his proposed project to the community. Committee Member Hernandez felt this project should be funded with a long-term loan and not a grant. Mayor Minor stated that the offsite improvements which totalled $650, 000 were normally paid by the Agency. Mayor Minor requested staff design a way to fund the project minus the $650, 000 for offsite improvements. Mr. Miller stated that Camden Development could not make immediate loan repayments until after the first 2 - 3 years. He stated that the project would need to be receiving a positive cash flow. Chairwoman Pope-Ludlam recommended that this item be brought to the Commission on September 7, 1993, and that staff be directed to negotiate with Camden Development on a funding source for the additional $650, 000 after the offsite cost of $650,000 was paid with bond proceeds. Mayor Minor requested staff be allowed to explore other options of funding besides a loan. Mr. Miller spoke on his funding request indicating that Camden Development would incur excessive costs due to the moving of the hill. REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminaug2 - 4 - AUGUST 19, 1993 • Mayor Minor recommended staff come up with various motions to present to the Commission regarding the funding for this project. The Chairwoman and Committee Members unanimously agreed to use bond proceeds to fund the offsite improvements for this project. Mayor Minor briefly discussed the $1 million allocated for the Performing Arts Center. He felt that maybe some of those allocated funds could be used for the Civic Light Opera and the Symphony. RECO14-IENDATION The following recommendations were made by the Redevelopment Committee: That the Mayor's proposal regarding the bonding for the police station be recommended to the Community Development Commission. That the offsite improvements costs of $650,000 for the University Village project be paid for with bond proceeds. That staff be directed to meet with Camden Development to identify a manner in which the additional $650, 000 be structured, and that alternatives identified be presented to the Community Development Commission on September 7, 1993. The Committee requested they be kept informed of the progress of this item. 2. PASEO LAS PLACITAS SPECIFIC PLAN Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this was merely informing the Committee that an extension time of thirty (30) days was needed to prepare the amendment to the specific plan. RECODMENDATION The Committee recommended this item be received and filed. 3. PROPOSED ADJUSTED WORK WEEK SCHEDULE Kenneth J. Henderson, Executive Director, Development Department, indicated that this item was previously reviewed at the budget negotiations and was continued. He emphasized the Air Quality Management District (AQMD) requirements regarding reducing pollution. He stated that there were other benefits associated with the adjusted work week schedule that were set forth in the staff report. Chairwoman Pope-Ludlam expressed concern regarding the access to the Agency to conduct business/meetings. REGULAR MEETING REDEVELOPMENT COMMITTEE 1M:rminaug2 - 5 - AUGUST 19, 1993 Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Agency would like to give the proposed work week schedule a three (3) month trial run to see if it would be effective for both the Agency and the city. Committee Member Hernandez expressed concern regarding developers not being able to meet with staff due to office closure. Mr. Steinhaus emphasized that before the proposed work week schedule was implemented, staff would conduct a marketing program to notify the public as well as put appropriate messages on the answering machine. Mr. Henderson stated that the program had been successful in other jurisdictions mainly because of various marketing programs. Mayor Minor questioned whether or not employees could alternate their off days, i.e. , some take Mondays off and others take Fridays off. Mr. Henderson explained that due to the size of the organization, it would be very difficult to implement. Sam Catalano, Carousel Mall, questioned the impact the proposed 9/80 plan would have on the downtown area such as the restaurants. Mr. Henderson stated that lunch hours on the 9/80 plan remain the same. The only change would be extended work hours from 8 to 9 hours a day and every other friday off. Committee Member Negrete spoke on the benefit of the Agency having extended day hours which would better accommodate the public. RECOMMENDATION The Committee recommended approval of this item on a pilot basis until the end of the year. The recommendation was approved by a 2-1 vote. 4 . ECONOMIC DEVELOPMENT AGENCY PROCUREMENT POLICIES AND PROCEDURES Kenneth J. Henderson, Executive Director, Development Department, stated that the Agency was requesting that its purchasing Policies and Procedures prior to April 19, 1993 be reinstated. He stated that the change in the policies authorized staff to notify the Commission of any expenditures over $10, 000. He said it had become difficult to proceed with simple projects such as the Economic Impact Report for the downtown area due to the funding limitations. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that Michael Maudsley, former fourth ward councilman recommended that once the administration for the city changed, the old policy should be reinstated. REGULAR MEETING REDEVELOPMENT COMMITTEE t Imp:rminaug2 - 6 - AUGUST 19, 1993 r a } MAYOR MINOR WAS EXCUSED AT 4:10 P.M. Committee Member Hernandez expressed concern regarding the Council Members being notified of expenditures taking place within the Agency. Mr. Henderson recommended the Agency be allowed to return to its old policy and that the committee observe how the Agency operates under the new administrative staff. Committee Member Hernandez emphasized that he wanted to be kept informed of all expenditures by the Agency. Mr. Steinhaus stated that staff could notify the Committee on a monthly basis as to all expenditures. Committee Member Hernandez stated that he wanted to be notified before the funds were spent. He suggested a memo of notification be sent to the council members on the day of the transaction. He specified notification of special projects and the hiring of consultants. Mr. Steinhaus stated that the City still holds its $25, 000 spending limitation authority. Mr. Steinhaus asked if the Mayor could be allowed to devise a policy to keep the Council informed of the Agency expenditures. Lorraine Velarde, Executive Assistant to the Mayor, asked for additional information regarding this item in order to report it to the Mayor for his comments. Committee Member Negrete suggested this item be tabled. RECOMMENDATION The Committee recommended this item to the Community Development Commission on September 7, 1993, based upon the Mayor's approval and contingent upon the Mayor agreeing to the stipulations expressed by Committee Member Hernandez. ITEM NOT ON THE AGENDA Committee Member Hernandez stated that he would like to discuss Millennium Manor which came up after the posting of the Agenda. Chairwoman Pope-Ludlam felt the item should be discussed in the Sousing Committee since it was last discussed there. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the item was last discussed in closed session. Committee Member Hernandez made a motion, seconded by Committee Member Negrete that this item arose after the posting of the Agenda. REGULAR MEETING REDEVELOPMENT COMMITTEE t lmp:rmi.naug2 - 7 - AUGUST 19, 1993 > Motion carried by the following vote: Ayes: Chairwoman Valerie Pope-Ludlam; Committee Members Edward Negrete; Ralph Hernandez. Kenneth J. Henderson, Executive Director, Development Department, stated that after discussions with Mr. Cliff Carel regarding the Millennium Manor project, he requested that his good faith deposit of $10, 000 plus 6% interest for the duration of time the city held his deposit, approximately $16, 000, be returned to him, and that the agreement be terminated. 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 4:24 p.m. to September 9, 1993. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminaug2 - 8 - AUGUST 19, 1993