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HomeMy WebLinkAbout03- RDA Minutes REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING November 18, 1993 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Valerie Pope-Ludlam at 3:09 pm. 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; Sue Morales, Assistant to the Agency Administrator; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE None. 1. CAROUSEL MALL AGREEMENT Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item related to the operating covenants signed by mall tenants. An operating covenant requires a store owner to keep his doors open. He indicated that several department stores within the mall had closed and there was no mention of the operating convents the store owners had signed. He stated that the mall would like to re-activate the covenants. Mr. Steinhaus stated that since the Agency owned one-half of the mall, the parking lot and have a vested interested in the mall, the Agency should pay 50% of the costs to enforce the coven�ults. REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 1 - NOVEMBER 18, 1993 '2 0 RECOMMENDATION The Committee recommended approval of this item to the Community Development Commission. 2. SMALL. BUSINESS LOAN PROGRAM Chairwoman Pope-Ludlam indicated that she was not familiar with the operations of the Small Business Loan Program and requested clarification. She stated that if the Agency was using bank guidelines to grant its loans, it would not be helpful to the public. Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview of the program. He explained that in order to qualify for the small business loan program, the business needed to have a net-worth of less than $2 million, at least two (2) years operating experience and adequate collateral. He stated that the business would also need the ability to create jobs and be able to obtain additional financing either through equity or private financing. Committee Member Hernandez asked the maximum loan amount available from the small business loan. Mr. Henderson stated that the maximum loan amount was $75,000. He said that approximately four (4) loans had been approved, but only three (3) had been closed. He indicated that the fourth applicant did not commit to the loan terns. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would have staff resubmit the loan package to the fourth applicant to see if he was ready to commit. Committee Member Negrete questioned the use of balloon payments and stated that they would not be applicable to the small business program. Chairwoman Pope-Ludlam questioned the amount of staff working on this project. Mr. Henderson stated that Emily Wong, Project Manager, was the primary contact person and Laura J. Muna-Landa, Development Specialist was her back-up. RECOMMENDATION The Committee recommended this item be received and filed. 3. ROGER'S BINDERY Committee Member Hernandez made a motion, seconded by Committee Member Negrete. that this item arose after the posting of the agenda. The motion carried by the following vote: Ayes: Chairwoman Pope-Ludhun; Committee Members Negrete; Hernandez. Noes: None. REGULAR MEETING REDEVELOPMENT COMMITTEE 1mp:rminnov2 - 2 - NOVEMBER 18, 1993 Committee Member Hernandez expressed concern regarding the fate of Roger's Bindery. He stated that if the bindery does not receive some type of assistance from the Agency, it would lose major contracts, including work from the post-office. Committee Member Hernandez stated that if the bindery receives assistance, it would relocate 300 jobs from its Colton facility to its San Bernardino facility. This move would generate utility taxes for the City. Kenneth J. Henderson, Executive Director, Development Department, discussed the actions of the Commission at the November 15, 1993 meeting and the instructions given to staff. He stated that the consultant was working with the bindery to obtain more information regarding the firm's business practices including personal income statements. Chairwoman Pope-Ludlam discussed the actions that would need to take place in order to proceed with the foreclosure proceedings. Dennis A. Barlow, Senior Assistant City Attorney, stated that the direction given to staff at the last Commission Meeting was to work out something that would benefit each party involved. Discussion ensued regarding the payment amount of the loan for the bindery and also requests from other businesses to convert their loans to grants or offer them extensions. Mr. Steinhaus stated that Mr. Imbriani indicated to him that he would be willing to make monthly payments of$1,000. RECOMMENDATION This item was for discussion purposes only. 4. ADJOURN TO CLOSED SSION There were no items for discussion in Closed Session. 5. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 4:00 pm. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING REDEVELOPMENT COMMITTEE lmp:rminnov2 - 3 - NOVEMBER 18, 1993