HomeMy WebLinkAbout11- Development Department 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
REQUEST FOR C0MMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: ROGER'S BINDERY
Executive Director
Date: October 14, 1993
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Synopsis of Previous Commission/Council/Committee Actions)
The Community Development Commission and Redevelopment Committee, on
September 20, 1993 and October 7, 1993 considered the foreclosure
status of Roger's Bindery. The Committee developed these
recommendations for Community Development Commission consideration.
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Recommended Motion(s):
(Community Development Commission)
Redevelopment Committee Recommendation
MOTION A: That the Community Development Commission subordinate its
"first" position on collateral used to secure this loan
to 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.
(Motions Continued on Next Page)
U
44PIA,Administrator KENNETH J. HEN16ERSON
Executive Director
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Contact Person(s) : ----------------
( ) Ken Henderson/Mike Trout Phone: 5081---
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Project Area(s):
Ward(s): _
Supporting Data Attached: _ Staff Report
FUNDING REQUIREMENTS: Amount: $
Source: _
Budget Authority:
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Commission/Council Notes: ----------------
KJH:1mp:O873T
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COMMISSION MEETING AGENDA
Meeting Date: 10/21/1993
Agenda Item Number: _
DEVELOPMENT DEPARTMENT
REQUEST FOR COMMISSIO, -OUNCIL ACTION
October 14, 1993
Page 2
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Motions Continued:
(Community Development Commission)
Redevelopment Committee Recommendation
MOTION B: That the Community Development Commission using the
existing principal balance, develop a new amortization
schedule using an interest rate which reflects the
current economic conditions.
MOTION C: That the Community Development Commission build into the
new amortization schedule a deferred period. The
specific length of this deferred period is yet to be
determined.
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KJH:lmp:0873T COMMISSION MEETING AGENDA
Meeting Date: 10/21/1993
Agenda Item Number:
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
ROGER'S BINDERY
On September 20, 1993, the Mayor, three (3) members of the Common
Council and staff met to discuss the delinquent Agency loan with
Roger's Bindery. After significant discussion, the Ad Hoc Committee of
Council members made certain recommendations as more fully described
below:
To assist Roger's Bindery during the difficult economic conditions that
it is experiencing and to ensure that those jobs created by Roger's
Bindery remain in San Bernardino, the following is proposed:
1. That the Redevelopment Agency subordinate its "first" 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.
2. That the Redevelopment Agency, using the existing principal
balance, develop a new amortization schedule using an interest
rate which reflects the current economic conditions.
3. 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.
On October 7, 1993, the Redevelopment Committee affirmed the Ad Hoc
Committee recommendations and recommended to the Community Development
Commission approval of same.
It is hoped that the above items will allow Roger's Bindery to remain
open and provide continued employment for the citizens of the City of
San Bernardino. Additionally, it is hoped that this will allow Roger's
Bindery time to recover financially so that it will be in a position to
repay its loan with the Agency.
The Redevelopment Committee recommends adoption of form motions "A: ,
"B", and "C V1.
KENNET J. 11E ERSON, Executive Director
Development Department
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KJH:lmp:0873T COMMISSION MEETING AGENDA
Meeting Date: 10/21/199)3
Agenda Item Number: /