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HomeMy WebLinkAbout02 REDEVELOPMENT COMMITTEE M I N U T E S REGULAR MEETING September 10, 1992 4:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:09 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Members Jack Reilly and Mike Maudsley. STAFF PRESENT 5 Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Phil Arvizo, Executive Assistant to the Council; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Peggy Ducey, Assistant to the City Administrator; Roger Hardgrave, Director of Public Works; La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Ben Dominguez, Vanir Development Company; H. Frank Dominguez, Vanir Development Company; Richard Dominguez, Vanir Development Company. 1. OFFER TO PURCHASE - 201 NORTH "E" STREET BUILDING Kenneth J. Henderson, Executive Director, Development Department discussed previous actions taken by the Committee on this item indicating that staff had requested additional time to analyze the new offer submitted by Mr. Dominguez at the meeting of August 6, 1992. Mr. Henderson indicated that the Agency had spent approximately $4 .5 million on the building. He noted that even if Vanir Development purchased the building, the Agency would still be responsible for all costs associated with the building it is currently responsible for as owner of the building. He stated the Agency had discussed the offer with Miller and Schroeder and they felt the Agency would better benefit by keeping ownership of the building. Miller and Schroeder also recommended that if the building was for sale, a bidding process should be initiated. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 1 - SEPTEMBER 10, 1992 0 Mr. Henderson briefly discussed the amount being offered by Vanir ti Development and also the amount the Agency felt the building was worth. Chairwoman Estrada questioned the tax increments that would be received from the building indicating that over the period of the lease it would total approximately $900, 000. Mr. Henderson indicated that because the Agency was responsible for paying taxes, there would be, in affect, no tax increment benefit. Mr. Henderson discussed the upfront cash the Vanir Development offer would bring, but indicated that there was some disadvantages as well as advantages to his offer. He then concluded by saying the Agency would benefit more by retaining the ownership of the building. Chairwoman Estrada indicated that her understanding was that the Chamber of Commerce, Main Street and the Convention and Visitors Bureau would all be relocating to the 201 Building. Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that a proposal had been submitted to the Agency for the Chamber of Commerce to be relocated to the Fuddruckers portion 6f the building, but Main Street and the Convention and Visitors Bureau had not yet been determined. Frank Dominguez, Vanir Development Company, reviewed his past actions in dealing with the City on the purchase of the 201 building. He indicated that he had prepared a response to the response he received from the Agency. CHAIRWOMAN ESTRADA WAS EXCUSED AT 4:20 P.M. Mr. Henderson recommended to the Committee that they discuss Item #2 of the Agenda in lieu of the Chairwoman's absence. 2. REQUEST TO SUBMIT APPLICATION FOR ECONOMIC DEVELOPMENT ADMINISTRATION OVERALL ECONOMIC DEVELOPMENT PLAN GRANT Kenneth J. Henderson, Executive Director, Development Department indicated that the Agency had received a number of proposals and presented them to the County of San Bernardino, Economic and Community Development Department. He stated that after discussions with the Economic Development Administration Office in Los Angeles, it was requested the city submit an application for a sewer line extension as listed in the staff .report. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 2 - SEPTEMBER 10, 1992 Mr. Henderson stated that the OEDP grant process was very competitive. He said that the grant would allow CALMAT to provide approximately 6000 jobs and also possibly help in the development of the Glen Helen Amphitheatre and a Hotel. He indicated that these opportunities would help enhance that portion of the City. Chairwoman Estrada questioned why the City was requesting the OEDP grant under the County structure. She felt it would be better for the City to submit the OEDP grant on its own. Mr. Henderson indicated that a letter was received from the of the Economic Development Administration Office in Los Angeles, and they requested our grant application be submitted along with the County's request. Committee Member Maudsley asked what part of the sewer line extension would be in the City and also opposed the Agency being involved in the community of Devore. He felt a proposal benefitting the City should of been chosen for submittal. Mr. Henderson stated the proposal for sewer lines was chosen by the Federal Economic Development Administration as the most 5 competitive City proposal because of its ability to create jobs. Committee Member Maudsley emphasized that the City of San Bernardino should work to benefit the City of San Bernardino. Committee Member Reilly asked the timeline on the proposal and the submittal date. Mr. Henderson stated the deadline for proposal submittal was September 30, 1992. Chairman Estrada requested a list of the other projects that were submitted for review. Roger Hardgrave, Director of Public Works, briefly discussed the project and indicated it would benefit Devore and CALMAT. Chairwoman Estrada recommended a special meeting next week to finalize this item and to review the five year capital improvement list. RECOMMENDATION The Committee recommended this item be further reviewed at a special Redevelopment Committee Meeting on Thursday, September 17, 1992 at 4 :00 p.m. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 3 - SEPTEMBER 10, 1992 1. OFFER TO PURCHASE - 201 NORTH "E" STREET BUILDING - Continue Mr. Dominguez, President, Vanir Development Company, spoke briefly on the 201 building and also the improvements that have been done to the building since it was purchased by the Agency. He indicated that he had revised his offer to $5 million or the appraised value if less than the offer. He also indicated that his new offer would allow the Agency to advertise the sale of the building for 60 days. Mr. Dominguez discussed Mr. Henderson's comments regarding the $18 million payment in rent and emphasized that the $5 million purchase price for the building, if invested properly, could also result in a high-return such as the rental fee. He stated if he was awarded the purchase of the building, the City would still have 100% control of the building. He felt his offer was modified with the City's best interest in mind. He also indicated that the City could re-purchase the building after year 24 for $10. Mr. Henderson stated Mr. Dominguez' revised offer warranted serious consideration by both staff and the Committee. He recoi�mended the item be reconsidered at the special meeting next week after staff has had an opportunity to review it thoroughly. Chairwoman Estrada requested staff to compare the tax increments and rent payments when reviewing the item. RECOMMENDATION The Committee recommended this item be brought back in two (2) weeks, and offer be extended until September 24, 1992. 3. 50/50 LANDSCAPING PROGRAM; GOVERNMENT PARCEL LANDSCAPING PROGRAM Kenneth J. Henderson, Executive Director, Development Department indicated that this item referred, in part, to potential landscaping for the Baseline Vicinity Merchants Security District. He stated that he and Committee Member Reilly felt they should keep the Committee informed on the progress of that district and on the landscaping program as a whole. He stated the total expenditure to date for the project was $192, 350.15. He indicated this was a receive and file item only. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rininspl - 4 - SEPTEMBER 10, 1992 UK— Chairwoman Estrada asked for an update on the proposed Baseline and Arrowhead district. Mr. Henderson stated the Baseline Vicinity Merchants had been in discussion with the Arrowhead district to expand the security and beautification. He asserted that the key to expanding the district was cooperative property owners. Discussion ensued regarding the upkeep of the property in the baseline vicinity. RECOMMENDATION The Committee recommended this item be forwarded to the Commission as a receive and file item. 4. FORTIETH STREET CORRIDOR Kenneth J. Henderson, Executive Director, Development Department, stated that this was a receive and file item for information purposes only. He said that Doris Daniels and Sandy Paulson had worked *ith the Arroyo Group (outside consultant) on this item, and the Department of Planning and Building Services plans to submit the plan at the Planning Commission Meeting in approximately 6 weeks. He indicated that if a good plan was formalized and people were willing to work together on this project, it could become a real success. RECOMMENDATION The Committee recommended this item be forwarded to the Commission as a receive and file item. ITEMS NOT ON THE AGENDA POLICE FACILITY RENOVATION Committee Member Maudsley made a motion, seconded by Committee Member Reilly that this item arose after the posting of the Agenda. Roger Hardgrave, Director of Public Works, stated the architect working on this project had given him some preliminary figures as to the cost of the project which totaled $3 million. Mr. Hardgrave spoke on the possibility of not renovating Building B and making an addition to Building A which would be more serviceable for the Police Station. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 5 - SEPTEMBER 10, 1992 r a a Mr. Henderson spoke on the $3 million preliminary figure and stated the Commission allocated, at the March 7, 1992 Budget Workshop, $2 million for the project and the Agency had reserved $1 million which would cover the costs. He indicated that this action took place prior to the adoption of the state budget which would cost the Agency approximately $2. 9 million. He stated that the Commission may monies. want to reorganize the priority list in order to fund the project with other a Peggy Ducey, Assistant to the City Administrator, explained the different possibilities of expanding Building A or renovating Building B. She indicated that staff and the architects were trying to compare actual construction costs for both possibilities. She indicated that she wanted to get some direction from the Committee as to what direction to go with. Committee Member Reilly recommended the Commission as a whole make a decision on this item. Discussion ensued regarding the cost of the renovations for both buildings and also the possibility of bonding. 5 RECOMMENDATION The Committee recommended this item be reviewed by the Commission at a workshop luncheon to be held at the next Commission Meeting. 2. REQUEST TO SUBMIT APPLICATION FOR ECONOMIC DEVELOPMENT ADMINISTRATION OVERALL ECONOMIC DEVELOPMENT PLAN GRANT Kenneth J. Henderson, Executive Director, Development Department, informed the Committee that the deadline for the filing of the application was September 17, 1992. Stafford W. Parker, Deputy Director, Development Department, requested the Committee authorize staff to file the pre-application form on the 17th so the City would be eligible for competition. Chairwoman Estrada informed Mr. Parker of the earlier discussions on this item and the concern expressed by the Committee regarding the project being located in the Devore area. She recommended that a special meeting at an earlier date be held to review the item. Committee Member Maudsley indicated that he felt this item would only cause a conflict. Dennis Barlow, Senior Assistant City Attorney, spoke briefly on this item and informed the Committee that since the project would benefit businesses in the area, it would not cause the City any legal problems. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 6 - SEPTEMBER 10, 1992 .t- Committee Member Reilly asked how often the City could apply for an OEDP Grant Mr. Henderson indicated that the City could apply on a yearly basis. Lorraine Velarde, Executive Assistant to the Mayor, indicated that the Mayor reviewed this item and he looked at it as a way to benefit the entire County. She asked staff if the County could proceed with this item without the input of the City. Mr. Henderson indicated that he would speak with County officials and see if they can sponsor this item alone. RECOMMENDATION The Committee did not make a second recommendation on this item. 5. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 6. ADJOURNMENT 0 There being no further business, the meeting of the Redevelopment Committee was adjourned at 5:53 p.m. to September 24, 1992. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminspl - 7 - SEPTEMBER 10, 1992