HomeMy WebLinkAbout09- Development DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL. ACTION
FROM: KENNETH J. HENDERSON SUBJECT: CENTRAL CITY COMMERCE
Executive Director CENTER - WOOLWORTH
BUILDING PARKING LICENSE
DATE: November 24, 1993
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Svnopsis of Previous Commission/Council/Committee Action(s):
On July 19, 1993 the Community Development Commission authorized drafting and execution of a fourth
amendment to that certain Parking License and Easement with Option Rights entered into with Central City
Commerce Center on the 21st day of April.
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Recommended Motion(s):
(Mayor and Common Council)
MOTION A: RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE
EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND
EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND
CENTRAL CITY COMMERCE CENTER.
Motions Continued to Next Page...
V
Administrator KENNETH J. HEND I IERSON
Executive Director
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Contact Person(s): Kenneth J. Henderson/John Hoeger Phone: 5081
Project Area(s): Central City (CC) Ward(s): One (1)
Supporting Data Attached: Staff Report: Resolutions
FUNDING REQUIREMENTS: Amount: N/A Source: N/A
Budget Authority: N/A
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Commission/Council Note
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KJH:JBH:lag:wlwrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993
Agenda Item Number:
REQUEST FOR COMMSSION/COUNCIL ACTION
Central City Commerce Center
November 24, 1993
Page Number Two
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Recommended Motlon(s) Continued:
Community Development Commission
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION
RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE
CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
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KJH:JBH:lag:wlwrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993 j
Agenda Item Number: / �1
0
DEVELOPMENT DEPARTMENT
STAFF REPORT
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CENTRAL CITY COMMERCE CENTER -
_Woolworth Building Parking License
On July 19, 1993, the Community Development Commission authorized the attached
amendment, but with a delay of monthly parking space payments until July 31, 2003, to
support an extension of the lease of the building by the County of San Bernardino. Due to
delays in obtaining the approval of the County Board of Supervisors, the date now needs to
be moved to August 31, 2003, as shown in attachment. Adoption of the form motions will
authorize execution of the amendment with the revised date.
Background
The former Woolworth Building, located on the southwest corner of Fourth and "E" Streets, is
one of San Bernardino's historic structures being preserved, in part, through the Agency's
assistance efforts. To facilitate the rehabilitation and leasing of the building, now owned by
Central City Commerce Center, the Agency agreed in 1983 to obtain and provide 80 parking
spaces in the adjacent three level parking structure that serves the Carousel Mall. In an
agreement dated April 21, 1983 the terms of Agency assistance include:
• Agency to obtain, from Central City Company (the owner and operator of the
Carousel Mall), 35 existing parking spaces in the three-level parking structure.
• The Agency to sublease, also from Central City Company, an unimproved area
on the ground floor of the structure which had been intended to become a retail
building facing "E" Street.
• The Agency to construct parking improvements estimated to cost $65,000 to
provide 45 parking spaces from the previously unimproved ground floor area.
• The Commerce Center to reimburse the Agency $65,000 in annual payments
over five years, interest free.
• The Commerce Center to pay $20 per space per month ($1600 per month for
the 80 spaces) commencing 90 days after completion of the improvements.
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KJH:JBH:1ag:w1wrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993 f
Agenda Item Number: 17
DEVELOPMENT DEPAR._.tENT STAFF REPORT
Central City Commerce Center - Woolworth Building Parking License
November 24, 1993
Page Number -4-
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The Commerce Center, however, was unable to obtain tenants for the building and requested
that the Agency provide relief from the space rental payments. The Agency has executed
three subsequent amendments which, among other things, have increased the cost
reimbursement to match actual costs of $91,000 and which have also waived payment of $20
space rental fee until January 1, 1995.
In 1988, the Commerce Center succeeded in obtaining the County as a tenant for the building.
It has used the building to house its Child Protective Services operation. Starting at that time,
Commerce Center did begin to pay $5.60 per month per space which goes to the City's
General Fund and helps offset the cost of operation and maintenance of the parking structure.
Agency Support
The Agency supports the building in two direct ways. It makes payments on an increasing
schedule to Central City Company for the space in the three-level structure. Currently, that
payment is $30,000 per year. In addition, starting in March of 1993, the Agency arranged for
the County's Central Motor Pool to use 60 spaces on the top level of the five-level parking
structure adjacent to City Hall. Many, although not all, of these vehicles are for the use of
County employees operating out of the Woolworth Building.
The Agency and its Main Street Department have also helped in other ways, including
reducing rehabilitation costs through obtaining clearance for an above ground electrical
transformer installation on Fourth Street which solved a difficult retrofit problem for the
building. Other Agency projects, such as the building of Court Street Square and the
construction of the new Government Center adjacent to the site, will benefit the building in
the long term.
County Lease
Still, the owner's costs associated with rehabilitating the building for the County were high
and the rent paid by the County has been relatively low. The County will pay about $.90 per
month per square foot for the office area of the building on a modified gross basis (the tenant
pays for electrical but other operating costs are provided by the landlord). While not
generous, this appears to be a reasonable rent in the market place.
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KJH:JBH:1ag:w1wrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993
(,/_,/
Agenda Item Number:
f
Am
DEVELOPMENT DEPAR__r1ENT STAFF REPORT
Central City Commerce Center - Woolworth Building Parking License
November 24, 1993
Page Number -5-
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The employees housed in the building are in the Child Protective Services Division of the
County Department of Public Social Service's operations. They earn above average salaries,
as evidenced by the fact that they all have a four year college degree or better as a
requirement for their positions. These employees are a positive asset in the downtown
environment. The building contains very little visitor space and public use is limited almost
solely to interviews with foster or adoptive parents. This helps limit demand on the
downtown infrastructure.
The County has, however, experienced difficulties revolving around parking for the building.
These involve issues of availability, security and control. Both the Agency and the Central
City Company have worked to provide solutions to the parking problems. The Central City
Company has arranged to rent additional parking in the three-level structure. The Agency has
provided for County parking in the five-level structure. Prior to committing to the new
Central City Company lease, however, Commerce Center has wanted to be certain of the
County's willingness to renew its lease of the building. The County has now renewed its
lease based upon the earlier approval by the Community Development Commission of terms
for a fourth amendment to the Parking License.
Request for Additional Agency Assistance
Based upon cash flows and tax returns provided to Agency staff, it appears that there is
insufficient return produced in the building to both pay for the cost of parking and provide for
significant cash after debt service. Reducing parking costs would directly increase the
project's cash flow.
To provide any cash at all requires a restructuring of the existing debt on the property. A
new arrangement has been negotiated for the all-inclusive deed of trust holder which lowers
the interest in first position from 10% to about 6%. A refinancing of the second position
financing is also in process. Success for the second refinancing depends upon appraisal
factors and the appraised value will be increased if operating costs such as parking can be
lowered.
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KJH:JBH:1ag:w1wrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993
Agenda Item Number:
DEVELOPMENT DEPAR"j_.iENT STAFF REPORT
Central City Commerce Center - Woolworth Building Parking License
November 24, 1993
Page Number -6-
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Both to increase project yield and to improve its ability to successfully refinance the building,
the owner requested (and the Commission conceptually approved) that the Agency extend the
waiver period for parking lot rent. It asked to be relieved of payments which total $19,200
per year until July 31, 2003. The Agency will continue to make payments of $30,000 per
year to Central City Company and the owner will continue to make the payments of $5,600
per year to the City for parking maintenance.
Due to delays in obtaining final County approval, it is now necessary to change the payment
relief to match the lease term which will expire August 31, 2003.
Recommendation
Staff recommends adoption of the form motion.
WWAN�01
KENNETH J. 14ENDERSON, Executive Director
Development Department
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KJH:JBH:lag:wlwrth.cdc COMMISSION MEETING AGENDA
MEETING DATE: 12/06/1993 1
Agenda Item Number:
(/
1
2 RESOLUTION NO.
3
RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE
4 EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND
EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY
5 DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND
6 CENTRAL CITY COMMERCE CENTER.
7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
8
9 Section 1. The Mayor of the City of San Bernardino is hereby authorized and
10 directed to execute for and on behalf of said City a Consent Clause contained in the
11 Fourth Amendment to Parking License and Easement With Option Rights between the
12 Community Development Commission of the City of San Bernardino and Central City
13
Commerce Center, a copy of which is attached hereto as Exhibit "I", and incorporated
14
15 herein by reference as fully as though set forth at length.
16 Section 2. The authorization to execute the above-referenced consent is
17 rescinded if the parties to the referenced Amendment fail to execute it within sixty (60)
18 days of the passage of this resolution.
19
20
21
22
23
24
25
26
27 JRli:nml
November 17, 1993
28
1 RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE EXECUTION
OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS
2 BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
3
4 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Conununity
5 Development Commission of the City of San Bernardino at a meeting thereof, held on the
F day of , 1993, by the following vote, to wit:
7
Commission Members AYES NAYS ABSTAIN ABSENT
8
NEGRETE
9
CURLIN
10
BERNANDEZ
11
OBERHELMAN
12
DEVLIN
13
POPE-LUDLAM
14
MILLER
15
16
17 Rachel Clark, City Clerk
18
19 The foregoing resolution is hereby approved this day of , 1993.
20
Tom Minor, Mayor
21 City of San Bernardino
22 Approved as to form
23 and legal content:
fames F. Penman
24 City Attorney
25
26 By•
27
28
� `l
• C
1
2 RESOLUTION NO.
3
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
4 THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE
EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND
5 EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY
6 DEVELOPMENT COMMISSION AND THE CITY OF SAN BERNARDINO AND
CENTRAL CITY COMMERCE CENTER.
7
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION
8 OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
9 SECTION 1. The Chairman and Secretary of the Community Development
10
Commission of the City of San Bernardino are hereby authorized and directed to execute
11
12 for and on behalf of the Redevelopment Agency of the City of San Bernardino a Fotu-th
13 Amendment to Parking License and Easement with Option Rights between the
14 Community Development Commission of the City of San Bernardino and Central City
15 Commerce Center, with such nonsubstantive changes to said Amendment as may be
16 approved by the Chairman and Agency Counsel. A copy of said Amendment is attached
17
18 hereto as Exhibit "1" and incorporated herein by reference as though fully set forth at
19 length.
20 SECTION 2. The authorization to execute the above-referenced Amendment is
21 rescinded if the parties to the Amendment fail to execute it within sixty (CO) days of the
22 passage of this resolution.
23
24
25
26
27 TBH:ninl
November 17, 1993
24
C
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FOURTH
2 AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND
3 CENTRAL CITY COMMERCE CENTER.
4
5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community
6 Development Commission of the City of San Bernardino at a meeting thereof, held on the day of
7 , 1993, by the following vote, to wit:
8
9 Corrunission Members AYES NAYS ABSTAIN ABSENT
10 NEGRETE
I1 CURLIN
12 HERNANDEZ
13 OBERHELMAN
14 DEVLIN
15 POPE-LUDLAM
16 MILLER
17
18 Kenneth J. Henderson, Secretary
19 The foregoing resolution is hereby approved this day of , 1993.
20
21 Tom Minor, Chairman
Community Development Commission of the City
22 of San Bernardino
23 Approved as to form
and legal content:
24
25 B .
A C nsel
26 gency
27
28
FOURTH AMENDMENT TO PARKING LICENSE
AND EASEMENT WITH OPTION RIGHTS
THIS FOURTH AMENDMENT entered into and effective this
day of , 1993, between the COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, CALIFORNIA, hereinafter "Agency", and
CENTRAL CITY COMMERCE CENTER, a California general partnership, as
licensee, hereinafter "Center", and consented to by the CITY OF SAN
BERNARDINO, hereinafter "City", amends that certain Parking License
and Easement with Option Rights entered into between the parties on
the 21st day of April, 1983, as previously amended pursuant to
Resolution No. 4737 of the Community Development Commission and
Resolution No. 85-84 of the City of San Bernardino, as further
amended effective June 2, 1986, pursuant to Resolution No. 4884 of
the Community Development Commission and Resolution No. 86-192 of
the City of San Bernardino, and as further amended effective May 4,
1989 pursuant to Resolution No. 5187 of the Community Development
Commission and Resolution No. 89-121 of the City of San Bernardino.
RECITALS
The parties hereto desire to amend that certain Parking
License and Easement with Option Rights, hereinafter referred to as
the "Agreement", heretofore entered into as specified above to
further delay the start of a portion of the $20 . 00 per space, per
month, lease payment .
JBH:nml 1
November 17, 1993
IMPLEMENTATION
The parties heretofore agree that :
A. Paragraph 2 .5 as added to the Agreement by the First
Amendment dated April 4, 1985, and as amended by the Third
Amendment dated May 4, 1989, is hereby amended to read as follows :
112 .5 Notwithstanding the provisions of
Section 2 .3 above, payments by Center, as
licensee, for the monthly parking space
charges shall be postponed until August 31,
2003, at which time the monthly charges shall
begin to be due and to be paid by Center to
Agency. Except that Center shall pay the
operation and maintenance costs for said
parking spaces to Agency as periodically
established. On August 31, 2003, the licensee
shall forthwith commence monthly payments at
the rate of $20 .00 per month, per space, for
each of the parking spaces included in the 'J'
building and for each of the parking spaces
covered by this agreement in the parking
structure. This amendment shall have no
effect whatsoever upon payment of the $13, 000
annually involving reimbursement for the cost
of establishing parking spaces in the ' J'
JBH:nml 2
November 17, 1993
building, and the monthly per space charge
shall be subject to adjustment periodically as
provided for in Section 2 .3"
3. In all other respects the Parking License and Easement
with Option Rights as entered into on the 21st day of April, 1983,
and as previously amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement
effective as of the date and year first set forth above.
COMMUNITY DEVELOPMENT COMMISSION CENTRAL CITY COMMERCE CENTER
OF THE CITY OF SAN BERNARDINO A Calif. General Partnership
By By
Chairman NICHOLAS J. COUSSOULIS,
A General Partner
By By
Secretary DR. JEROME T. TAUREK,
A General Partner
Approved as to form
and legal content:
By
A
JBH:nml 3
November 17, 1993
The City of San Bernardino hereby consents to this Agreement.
ATTEST: CITY OF SAN BERNARDINO
By:
City Clerk Tom Minor, Mayor
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
4