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HomeMy WebLinkAbout03- Community Development Commission REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING September 23, 1993 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Valerie Pope-Ludlam at 3:07 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. 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; Dennis A. Barlow, Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Joe Stejskas, Water Department; Bill Bryden, Water Department; Patricia Green, Vanir Development; Kenneth Johnston, Citizen; Susan Johnston, Larcon Development, Inc. 1. COMPREHENSIVE MARKETING PLAN Kenneth J. Henderson, Executive Director, Development Department, explained the efforts being taken toward the revitalization of Norton. He informed the Committee that the Inland Valley Development Agency (IVDA) had previously discussed and approved this item. Committee Member Hernandez expressed concern about the amount of funds being spent on marketing the City through Main Street, the Convention Center and Visitors Bureau and also the Chamber of Commerce. He stated that the individuals hired to complete this marketing plan would use our previous studies, regenerate them and extract from them a marketing tool. Discussion ensued regarding the documents used to market the City. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminsep2 - 1 - SEPTEMBER 23, 1993 RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 2. DELMANN HEIGHTS WATER SYSTEM UPGRADE Chairwoman Pope-Ludlam abstained from this item due to owning property in the area of discussion. Kenneth J. Henderson, Executive Director, Development Department, stated that this project was to upgrade the water in the Delmann Heights area. He said that $330,000 was recently approved to continue the upgrades. He explained that the letter attached to the staff report indicated that additional problems had occurred in the water lines which would cost an additional $80,000 in bond proceeds, some of which would be potentially offset by CDBG savings. Joe Stejskal, Water Department stated that the water department was approximately 50% complete with the project. Committee Member Hernandez questioned the effect the new lines would have on the water. Bill Bryden, Water Department stated that the new lines would improve the line pressure and taste of the water. Mr. Stejskal noted that the new lines would tremendously increase the fire flow in the lines. He also noted that the water department was approximately one (1) month ahead of the paving of the streets. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 3. SANTA FE AUTOMOBILE DISTRIBUTION FACILITY Kenneth J. Henderson, Executive Director, Development Department, stated that this item was for a proposed distribution facility at the Sante Fe Railroad which would serve primarily General Motors. He explained that approximately $220,000 worth of water facility improvements were needed at the facility and that the water department was requesting the Agency pay 50% of those costs. He emphasized that this facility would offer approximately 220 jobs at the offset increasing to total employment of approximately 420 jobs . Mr. Henderson explained that legal counsel was drafting agreements for this item which would be submitted to the Commission for its approval. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminsep2 - 2 - SEPTEMBER 23, 1993 Mayor Minor gave additional clarification on this item noting that the water improvements would be located from Saute Fe Railroad over to Rialto Avenue and an additional water line running north to the existing buildings. He stated that no work would be done on Fifth Street. Mr. Henderson stated that the water department would like to be complete with this project by the end of the year. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 4. DISPOSITION OF AGENCY DELINQUENT NOTES Committee Member Hernandez recommended the Committee and the Mayor meet with the individuals listed in this report and try to resolve their delinquencies in a positive manner. Chairwoman Pope-Ludlam noted that each individual in the report had different circumstances of why they could not pay their debt. Committee Member Hernandez requested an AD HOC Committee meet with the individuals within thirty (30) days, and report its findings to the Redevelopment Committee. Dennis A. Barlow, Senior Assistant City Attorney, explained that if the Agency does not follow through on its policies for delinquent payments, no client would pay its debts. Committee Member Hernandez recommended staff proceed with foreclosure on the two housing clients, and the AD HOC Committee would discuss with the businesses their delinquent notes. RECOMMENDATION The Committee recommended an AD HOC Committee be established to meet with the individual business owners who are delinquent on their payments and try to resolve their problems in a positive manner. This recommendation was approved on a 2-1 vote. ITEM NOT ON THE AGENDA Committee Member Hernandez made a motion, seconded by Committee Member Negrete that the need to take action on 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. Noes: None. REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminsep2 - 3 - SEPTEMBER 23, 1993 h i Committee Member Hernandez discussed the amount of hours he and Phil Arvizo, Executive Assistant to the Council devote to City Hall due to complaints received in the office. He stated that if the economy picks up, Mr. Arvizo would not be able to handle the amount of additional complaints that would funnel through the Council Office. He summarized the need for additional help in the Council Office and requested the Committee's approval. Kenneth Johnston, gave a brief statement to the Committee apologizing for the negative press caused by this item. He stated that if hired for this position, he would pledge his sincere devotion to the City of San Bernardino. Committee Member Hernandez recommended the agreement be forwarded to the Commission for approval. Kenneth J. Henderson, Executive Director, Development Department, stated that the two (2) motions listed on the pass-out should be considered for this item. He made a correction to Motion B indicating that it should read Agency Administrator instead of Agency Executive Director. He also explained that the cost listed for the position was for the remainder of the FY 93-94 fiscal year. Committee Member Hernandez indicated that the person selected for the position would take direction from Phil Arvizo. Mayor Minor discussed statements listed in the Agreement and Attachment A and advised the Committee to make changes to them before presenting it to the Commission. Discussion ensued regarding the need to amend the Agreement and Attachment A of this item regarding supervision and termination dates before presentation to the Commission. RECOMMENDATION The Committee recommended the Attorney's Office and staff work together to develop the staff report and change the Agreement and Attachment A and submit it to the Commission no later than 9:00 a.m. on October 4, 1993. 5. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminsep2 - 4 - SEPTEMBER 23, 1993 6. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 4:23 p.m. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee C REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminsep2 - 5 - SEPTEMBER 23, 1993 AWN • REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING October 7, 1993 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Valerie Pope-Ludlam at 3:15 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. 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; Ann Harris, Executive Director, Main Street; Dennis A. Barlow, Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Sandra Paulsen, Senior Planner, Planning and Building Services Department; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Patricia Green, Vanir Development; Gil Lara, Larcon Development Company; Susan Johnston, Larcon Development, Company. 1. DIRECTIONAL SIGNAGE Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that Ann Harris would give a brief overview of this item for informational purposes only, and the item would then be referred to Public Works/Engineering. Mayor Minor stated that additional questions regarding the signs still needed to be reviewed by Public Works/Engineering, such as the sign size and if it is legal to have illuminated signs. REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminoctl - 1 - OCTOBER 7, 1993 Ann Harris, Executive Director, Main Street, indicated that J. F. Davidson was hired to complete conceptual designs for the signs. She stated that the primary locations for the signs were at Waterman Avenue and freeway exits. She showed a map of the proposed sign locations indicating that there would be a total of sixteen (16) signs in two different sizes - 4 feet and 9 feet. Ms. Harris requested the Committee make comments regarding the map and also emphasized the need to discuss the plans with the Public Works/Engineering Department. Mr. Steinhaus discussed the need to have directional signage downtown emphasizing on the necessity to have signage for parking. Committee Member Negrete discussed the need to have signs on Fifth Street which is also a major thoroughfare. He also requested the signs include blank spaces which would allow for new signs as necessary. Ms. Harris indicated that the signs would be graffiti proof. RECOMMENDATION The Committee recommended this item be received and filed. 2. DECORATIVE LIGHTING PROGRAM Ann Harris, Executive Director, Main Street, indicated that during the holiday season, downtown businesses install small lights around their buildings in celebration of the holidays. She explained that there would be a 50% participation for the cost of the lights between the City and the business community and that the businesses would pay all electric costs and monitor the lights. She emphasized that the lights would create an identity for downtown. Ms. Harris explained that the 50% participation cost to the Agency would be $20,167.53 and that $31,000 would be the cost for City Hall and the 201 Building to participate in the program. She pointed out that the City would need to act on this item as soon as possible due to the upcoming holiday season. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoctl - 2 - OCTOBER 7, 1993 3. RENEWAL OF A SECURITY DISTRICT FOR THE BASELINE AREA BUSINESS ASSOCIATION Kenneth J. Henderson, Executive Director, Development Department, commented on the reduction in the crime rate in this area due to the Security District. He stated that the program was financed 50150 between the businesses in the district and the Agency and would be the second and final year of Agency participation. RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 4. CALIFORNIA INN (SRO) Gil Lara, Larcon Development, stated that in order to make this project work, it would take a market analysis, provided and the assistance of the City to support the project. Mr. Lara showed a chart which listed the rent prices of the SRO between $325 - $390 with an average cost of$365. He explained that all units of the SRO would be fully furnished and the utilities paid. Mr. Lara also explained that he would like the Agency to speak with the Housing Authority to see if they would support the project by contributing $1 million to the SRO. Discussion ensued regarding the ability of the Housing Authority to contribute funds to this project and also an alternate site for this project. Committee Member Hernandez expressed his concern regarding the relocation of the site proposed for this project. He stated that to switch sites at this time would cause a delay in the completion of the project. Lorraine Velarde, Executive Assistant to the Mayor, questioned the continuance of the project if the Housing Authority declined to contribute to the plan. Mr. Lara explained that if the Housing Authority declines to support the project, it would be the decision of the City to continue the project. Kenneth J. Henderson, Executive Director, Development Department, stated that the directions provided from the Commission was to amend the schedule of performa and bring the item to the Committee for its review and comments and submit same to the Commission for final approval. He said that staff and the developer must amend and make corrections to the amendment and have it ready for the next Commission Meeting. REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminoctl - 3 - OCTOBER 7, 1993 Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Housing Authority worked under the Housing of Urban Development (HUD) guidelines. He indicated that the Agency would speak to them regarding contributing to this project. Mayor Minor recommended that Mr. Lara be present with staff when they speak with the Housing Authority. Mr. Henderson recommended that a market study be done on this project to assist the Agency in validating the project. The Committee Members all agreed to have a marketing study done and to authorize the Agency to pay for the study. Susan Johnston, Larcon Development, submitted a schedule of performance completed by Larcon to assist Agency staff in amending the DDA. RECOMMENDATION The Committee recommended the schedule of performance be submitted to the Community Development Commission for approval on October 21, 1993; that staff meet with the developer and the Housing Authority to request their participation in this project; and that a market study be completed on the project and paid for by the Agency. 5. ARROW VISTA HOUSING DEVELOPMENT PROJECT Chairwoman Pope-Ludlam spoke on a meeting of the Homeowners Association in the Orangewood Estates attended by Mrs. Mary McGinnis, President of the Association. Chairwoman Pope-Ludlam explained that when Ms. McGinnis purchased her home in 1982 for $100,000, the home immediately depreciated by $40,000. Ms. McGinnis said that her home was currently appraised at $120,000. Chairwoman Pope-Ludlam gave this information to the Committee to stress the need to keep Arrow Vista homes at current sales prices in order to keep up the value of the homes in the surrounding area. Mary McGinnis, President, Orangewood Estates Homeowners Association, re-emphasized the comments made by Chairwoman Pope-Ludlam regarding the purchase of her home. She indicated that she worked as a nurse at Community Hospital and there was currently a list of 65 individuals at the hospital who were willing to purchase an Arrow Vista Home. Committee Member Hernandez commented on a need to lower the prices of the homes to attract buyers. Ms. McGinnis stated that the hospital staff were willing to pay higher prices for the homes in order to ensure that quality people purchase the homes. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoctl - 4 - OCTOBER 7, 1993 7L Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that there was a lien against the homes which was prohibiting the sale of those homes. LL Chairwoman Pope-Ludlam stated that discussions had ensued regarding reducing the prices of the homes by $25,000 which would cost the City approximately $1 million. She said that the previous Mayor requested the Agency use the $1 million to upkeep the property on the homes and to keep the selling price the same. Committee Member Hernandez suggested the agreement be modified to allow a broker to be hired to sell the homes. Kenneth J. Henderson, Executive Director, Development Department, discussed the meetings held with the previous Mayor regarding the Arrow Vista Homes and also the meetings held with the current Mayor regarding the hiring of a marketing firm to assist with the selling of these homes. David Edgar, Manager, Housing Division, Development Department, clarified previous statements regarding the sale price of the homes. He noted that the intent of the Agency was to maintain the current sales price and to offer a program to homebuyers which would lower the qualifying price of the homes. Mr. Edgar stated that the Mitchell Company had a long standing history of over 20 years in selling housing projects and troubled housing projects with over 1000 units. He said that its fee is 1.5% of the selling price. He concluded his statements indicating that it would take significant activity to rejuvenate the Arrow Vista Housing Project due to the length of time that it has been on the market. Committee Member Hernandez commented on the length of time requested by Mitchell Company to sell the homes. Mr. Edgar explained that the sale of three (3) homes per month in a new housing tract is normal. Ms. McGinnis reiterated the fact that she currently had a list of 65 people who were willing to purchase a home. She urged the Committee to allow those individuals an opportunity to apply and qualify for a home. Mayor Minor gave suggestions that would expedite the sale of these homes. RECOMMENDATION Chairwoman Pope-Ludlam stated that she would contact the Small Business Administration (SBA) regarding the lien held on the property in order to assist in the sale of the homes through the list submitted by Community Hospital employees. REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminoctl - 5 - OCTOBER 7, 1993 3 ITEM NOT ON THE AGENDA Kenneth J. Henderson, Executive Director, Development Department, stated that staff met with the Mayor, three (3) councilmembers and Rogers Bindery to discuss the delinquent Agency loan with Rogers Bindery. Mr. Henderson stated the recommendations proposed by the Council Committee indicating that all concerns addressed at the meeting were incorporated into the motions. RECOMMENDATION The Committee recommended approval of the following motions to the Community Development Commission: (a) That the Redevelopment Agency subordinate its "fast" position on collateral used to secure this loan. This will allow Roger's Bindery to obtain an additional loan for operating capital, using the same collateral to secure the new loan. The Agency would then be in a "second" position on the assets used as collateral; (b) That the Redevelopment Agency, using the existing principal balance, develop a new amortization schedule using an interest rate which reflects the current economic conditions; and (c) That the Redevelopment Agency build into the new amortization schedule a deferred period. The specific length of this deferred period is yet to be determined. f 6. PAY INCREASE FOR COMMISSION MEMBERS Chairwoman Pope-Ludlam spoke on the large volume of work required of Commission Members. She stated that in order to hold the post, it is best if the Commission Member is either retired or self-employed. She recommended that a committee be established to review how the Committee/Commission is paid. RECOMMENDATION The Committee recommended this item be placed on the Commission Agenda for discussion only. Mayor Minor recommended a dollar figure stating the amount of the increase be placed on the Agenda. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminoctl - 6 - OCTOBER 7, 1993 6. ADJOURN TO CLOSED SESSION (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 discuss with its negotiator the purchase, sale, exchange or lease of real property and give instructions to its negotiator concerning the price and terms of payment for the purchase, sale, exchange or lease of real property. (b) Pursuant to Government Code Section 54956.9c, the Redevelopment Committee of the Development Department of the City of San Bernardino will convene in Closed Session to discuss possible litigation. (c) Pursuant to Government Code Section 54957, the Redevelopment Committee of the Development Department of the City of San Bernardino will convene in Closed Session to consider personnel matters. (d) Pursuant to Resolution Number 5272, the Redevelopment Committee of the Development Department of the City of San Bernardino will convene in Closed Session to discuss matters of sensitive negotiations with development clients. 6. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 5:05 p.m. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE Imp:rminoctl - 7 - OCTOBER 7, 1993