The URL can be used to link to this page

Home My WebLink About09- Development Department DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: WEST SIDE PLAZA Executive Director DAY CARE PROJECT DATE: December 16, 1993 --------------------------------------------------------------------------------------------------------------------------------------------- Svnopsis of Previous Commission/Council/Committee Action(s): On December 9, 1993, the Redevelopment Committee recommended that the Community Development Commission authorize the Executive Director to enter into a lease agreement between the City of San Bernardino Redevelopment Agency and New Frontier Commercial Properties. --------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve the West Side Plaza Day Care Project and authorize the Executive Director to develop and execute a lease agreement between the City of San Bernardino Redevelopment Agency and New Frontier Commercial Properties in order to provide 3,400 square feet of outside play area in connection with the development of a day care facility. Administrator KENNEf H J. HEN ERSON Executive Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J Henderson/Emily Wong Phone: 5081 Project Area(s): Northwest Ward(s): Six (6) Supporting Data Attached: Staff Report: FUNDING REQUIREMENTS: Amount: Nom_ Source: N/A Budget Authority: N/A --------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Note ---------------------------------------------------------------------------------------------------------------- KJH:EMW:mnl:daycare.cdc COMMISSION MEETING AGENDA MEETING DATE: 12/20/1993 Agenda Item Number: DE E L O P M E N T DEPART E N T STAFF REPORT --------------------------------------------------------------------------------------------------------------------- West Side Plaza Day Care Project New Frontier Commercial Properties is currently in negotiations with the County of San Bernardino to lease 3,400 square feet in Building F at the West Side Plaza for the development of a Head Start day care facility. State code requirements for a facility of this size require the provision of 7,500 square feet of protected outdoor playing area. Adequate space does not currently exist at the West Side Plaza to meet this requirement. The proposed day care facility is, however, to be located within and at the east end of the shopping center, immediately adjacent to vacant land owned by the Redevelopment Agency. The Agency is proposing to lease the 7,500 square feet directly to New Frontier Commercial Properties. It, in turn, will sub-lease this area to the County. The County's Head Start day care facility is planned to provide service for approximately 100 children. The County program will make subsidized day care available to low and moderate income families. In addition to providing much needed day care services to children on the west side, the facility will also provide approximately twenty (20) full-time jobs. The resulting increase in the occupancy of the center will strengthen the economic stability of the entire shopping center. This day care facility could potentially increase traffic and is viewed as an excellent complement to retail uses in West Side Plaza.. The terms for the proposed lease are as follows: Lessor: San Bernardino Redevelopment Agency Lessee: New Frontier Commercial Properties Term: Three (3) years Options: To be determined based upon Head Start requirements and status of New Frontier option on Agency-owned property. Lease Rate: Year 1 - $1,000 Year 2 - $1,000 Year 3 - $1,000 2 Year Option $1,000 plus CPI adjustment -------------------------------------------------------------------------------------------------------------------------- KJH:EMW:mn1:daycare.cdc COMMISSION MEETING AGENDA MEETING DATE: 12/20/1993 Agenda Item Number: q DEVELOPMENT DEPA.__MENT STAFF REPORT West Side Plaza Day Care Project December 14, 1993 Page -2- ---------------------------------------------------------------------------------------------------------------------- An informal in-house appraisal conducted by staff indicated an approximate value of $2.25 per square foot. This works out to a value of $16,875 for 7,500 square feet of space. Using an estimated six percent (6%) annualized rate of return, the fair market ground rental for the subject property is $1,000 per year. Due to the non-profit public benefit derived from the use of this space and the estimated $20-$24,000 in tenant improvements required of New Frontier, the lease rate indicated above without CPI Adjustments until year four (or first option), is justifiable. The initial request for lease terms from New Frontier was a three (3) year lease plus four (4) five (5) year options for a total potential lease term of twenty-three (23) years. Staff feels the potential length of time is too long to "tie-up" the Agency's ability to sell and develop the land in the event New Frontier does not exercise its option to purchase. Notwithstanding this, staff would encourage any subsequent buyer to allow continuation of the land for purposes of a day care center. New Frontier Commercial Properties has a four (4) year option to purchase the Redevelopment Agency's five (5) acre parcel adjacent to the West Side Plaza. Should New Frontier Commercial Properties exercise its option, the lease between the Agency and New Frontier shall automatically terminate. If the option expires and the Agency decides to sell this parcel to another party, New Frontier Commercial Properties would be responsible for any expenses relating to any necessary lot splits. On December 9, 1993, the Redevelopment Committee considered this matter and recommended to the Community Development Commission approval of same as submitted. The subject proposal has also been discussed with the Northwest Project Area Committee during its regular meeting on December 12, 1993. The Committee concurred with the appropriateness of the proposed land use and deal points. Copies of the shopping center site plan as well as a parcel map indicating the proposed leasable area are attached for your information. Based upon the foregoing, staff recommends adoption of the form motion. 4AA06-1 KENNETH J. H NDERSON, Executive Director Development Department -------------------------------------------------------------------------------------------------------------------------- KJH:EMW:run1:daycare.cdc COMMISSION MEETING AGENDA MEETING DATE: 12/20/1993 Agenda Item Number: I ...o 1 "A*00 M I _ s a "AU VIA Q M L 1'O�f 0 At so 00 q IL 1 1� r Q� I� U l� 3 s � � • it 00 M RAWC) dilINao lvofOxly N W♦ N N N: I'' I � w N • Y • � Y �t R i I I I i �, c ec Cf= < �o Q .4 Z s S _ O W p =�0. O } O p < 3 c a H¢ < p u ; Q OI== Q t G 4 s s i �u <np► V p uj p c p V W O s <� < ;� r1 V 2 J =� p=G= Y 1 O�'01, C< a z =a pZ I O�= ••''777 —�V 1 J 2 ,18/=� O cc �rda rN� 4 W 0 lie ................... N F te '/U1 N371�M1� [� ''�pggyI7{/�//�� i i •_ . 1 xv NN NMN XM tf Cc voi Em LIJ F t r / •� m ' „ L1 ��•S L.I� 3_ �- ► m 1� XV cc CL uj OHM , . j = --� . I ! o w JN . 00 � di Y �r °e fI Fw • _ JI Ai LLJ cc _ I uj 0). cc E :i wf 2��