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HomeMy WebLinkAbout01- CDC Minutes MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE MAIN STREET BOARD OF DIRECTORS OF THE CITY OF SAN BERNARDINO M I N U T E S REGULAR MEETING February 1, 1993 11:00 a.m. The Regular Meeting of the Mayor and Common Council, the Community Development Commission, and the Main Street Board of Directors was called to order by Chairman W. R. Holcomb, at approximately 11:01 a.m. , on Monday, February 1, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb: Commission Members Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam and Norine Miller. Absent: Commission Member Esther Estrada. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Ann Harris, Executive Director, Main Street; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; and La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Carol Baker and Maria Hunt, The Sun Newspaper. ---------------- CONSENT CALENDAR The Commission Members requested that items numbered "6", 1181i, and "9" be removed from the consent calendar. REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-7 -1- FEBRUARY 1, 1993 IA Commission Member Minor made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "9" be adopted except for items numbered "6", "8", and "9" respectively. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of January 11, 1993 be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. 2. NORTH END REDEVELOPMENT STUDY AREA AD HOC COMMITTEE MINUTES (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez, that the minutes of the North End Redevelopment Study Area Ad Hoc Committee of the City of San Bernardino for the meeting of January 14, 1993 be received and filed as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. Development Department 3. HABITAT FOR HUMANITY (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez, to authorize the Chairman and Executive Director to execute an Owner Participation Agreement (OPA) between the Redevelopment Agency and Habitat for Humanity for financial assistance to acquire a parcel of land (not to exceed $25, 000) for the construction of a single-family detached dwelling unit. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -2- FEBRUARY 1, 1993 IA 4 . HOUSING DIVISION QUARTERLY ACTIVITY REPORT (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez, to receive and file the attached Housing Division Quarterly Activity Report for the months of October through December 1992 . The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. 5. LOS PADRINOS COMMUNITY COALITION AGREEMENT (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez, to approve an Agreement for Professional Services with Los Padrinos Community Coalition in the amount of $185, 000 which provides for assorted graffiti removal and neighborhood improvement activities. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. 7. ADOPTION OF NORTH END REDEVELOPMENT STUDY AREA (Mayor and Common Council) Councilman Minor made a motion, seconded by Councilman Hernandez, to rescind Resolution 85-175 which established a North End Redevelopment Study Area. Councilman Minor made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-27 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DESIGNATING A SURVEY AREA IN ACCORDANCE WITH THE COMMUNITY REDEVELOPMENT LAW (NORTH END STUDY AREA) . The motion carried by the following vote: Ayes: Council Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Councilwoman Estrada. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -3- FEBRUARY 1, 1993 I � (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Hernandez to direct staff to initiate all necessary procedures and activities to undertake activities and disciplines involving analysis and planning of the newly-adopted North End Redevelopment Study Area. The motion carried by the following vote: Ayes: Council Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Councilwoman Estrada. 6. POLICE HEADQUARTERS ACQUISITION - 466 WEST FOURTH STREET (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was being continued due to the third appraisal not ready for review. He indicated that an appraiser had been hired, but the work was not yet complete. Kenneth J. Henderson, Executive Director, Development Department, stated that the continuation date would change if the election conflicted with the meeting date. COMMISSION MEMBER MINOR WAS EXCUSED AT 11:03 A.M. Commission Member Hernandez made a motion, seconded by Commission Member Reilly, to continue the matter pertaining to the Police Headquarters Acquisition to March 1, 1993. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. COMMISSION MEMBER MINOR RETURNED AT 11:04 A.M. Agency Administration 8. PROMOTION OF A POSITIVE IMAGE FOR THE CITY OF SAN BERNARDINO (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that it had become difficult for the City of San Bernardino to achieve a positive image. CHAIRMAN HOLCOMB WAS EXCUSED AT 11:05 A.M. REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-7 -4- FEBRUARY 1, 1993 1A Mr. Steinhaus emphasized that the newspaper had a strong impact on the negative image of the City. He stated that the City should take the initiative to boost the image of the City. He recommended the City purchase advertisements in the newspaper which would entail positive things the City is pursuing. He indicated that the Mayor would host a meeting on February 4, 1993 with community leaders to discuss this problem and to receive input regarding proposal solutions. Chairman Holcomb stated that a presentation was made to the accounting team regarding the DFAS project, and several community leaders spoke on behalf of the City, and he invited them to speak at the February 4, 1993 meeting. He indicated that the item was placed on the agenda in order to keep the community comprised of what the City was doing. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 11:10 A.M. Chairman Holcomb noted that the City Image meeting would be held Thursday, February 4, 1993 at 8 : 00 a.m. in the EDA Board Room, 201 North "E" Street, Third Floor, San Bernardino, CA 92401. Commission Member Hernandez emphasized that the City should take action regarding the negative image being given by the press. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 11:12 A.M. The Community Development Commission received and filed the attached staff report regarding the promotion of a positive image of the City of San Bernardino. There was no vote taken. 9. MAIN STREET PROGRAM (Mayor and Common Council) Councilwoman Miller questioned the need for Motion E. Ann Harris, Executive Director, Main Street, explained Motion E indicating that this was scheduled to go to bid by the first of April. Councilwoman Miller stated that the Agency should have staff on board who could complete the technical assistance needed for this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this motion was part of a series of motions approved by the Council last fall. He indicated that staff was directed by Council to complete this survey due to the mis-perceptions, questions and criticisms Main Street received. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -5- FEBRUARY 1, 1993 IA Mr. Steinhaus stated that the group would determine if Main Street could be improved and that its findings would validate the request given in the fall. Councilman Hernandez agreed with Councilwoman Miller emphasizing that the City should have professional employees to complete this task without spending $9, 000. Councilman Minor made a motion, seconded by Councilman Reilly that the following resolutions be approved and adopted: RESOLUTION NUMBER 93-28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RATIFYING PRIOR APPOINTMENTS TO THE MAIN STREET ADVISORY BOARD. (Board of Directors of San Bernardino Downtown Main Street, Inc. ) RESOLUTION NUMBER 93-1MS RESOLUTION OF THE BOARD OF DIRECTORS OF SAN BERNARDINO DOWNTOWN MAIN STREET, INC. , DESIGNATING DATES, TIME AND LOCATION OF REGULAR MEETINGS OF SAID BOARD OF DIRECTORS. RESOLUTION NUMBER 93-2MS RESOLUTION OF THE BOARD OF DIRECTORS OF SAN BERNARDINO DOWNTOWN MAIN STREET, INC. , APPROVING AN AMENDMENT TO THE FIRST AMENDED AND RESTATED BYLAWS OF SAN BERNARDINO DOWNTOWN MAIN STREET, INC. RESOLUTION NUMBER 93-3MS RESOLUTION OF THE BOARD OF DIRECTORS OF SAN BERNARDINO DOWNTOWN MAIN STREET, INC. , DESIGNATING CHECK SIGNERS AND COUNTERSIGNERS FOR CHECKS AND VOUCHERS OF SAID CORPORATION. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Miller, to deny the request of the Agency Administrator to contract with the National Trust for Historic Preservation National Main Street Center in an amount not to exceed $9, 000 for technical assistance with the San Bernardino Downtown Main Street Program. Commission Member Minor asked staff if there was someone in house who could complete this task. Mr. Steinhaus stated that the Main Street staff could review those concerns that were expressed in the fall, and have them come back with some additional direction. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -6- FEBRUARY 1, 1993 IA Chairman Holcomb stated that bringing in an objective outside person would allow them to come up with some excellent ideas. He recommended hiring a neutral third party. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; and Miller. Noes: Commission Member Pope-Ludlam. Abstain: None. Absent: Commission Member Estrada. END OF CONSENT CALENDAR ---------------------- Development Department 10. MT. VERNON HARDWARE SMALL BUSINESS LOAN (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Maudsley, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-29 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE EXECUTION OF A SMALL BUSINESS LOAN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND MT. VERNON HARDWARE The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; and Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. Chairman Holcomb expressed concern over the time-consuming process of assisting small businesses. He recommended an administrative process be developed to expedite this process. ITEM NOT ON THE AGENDA NEW POLICE FACILITY Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to reconsider the item regarding the New Police Facility, not on the agenda. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Pope-Ludlam; and Miller. Noes: Commission Member Miller. Abstain: None. Absent: Commission Member Estrada. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -7- FEBRUARY 1, 1993 1A Commission Member Hernandez expressed concern regarding a document prepared by the architects in which the price of the facility had rose drastically. He explained that previous discussions regarding the new facility were at a cost not to exceed $8 million dollars. He said the current cost listed in the report was $13 million and recommended the item be referred to the Redevelopment Committee for further review. Chairman Holcomb stated that all concerns regarding this item would be resolved at a meeting with the architects on Wednesday, February 3, 1993. He asked the Commission not to take any action on this item until the meeting was completed. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to refer this item to the Redevelopment Committee. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Pope-Ludlam; and Miller. Noes: Commission Member Minor. Abstain: None. Absent: Commission Member Estrada. 12. ADJOURNED TO CLOSED SESSION At 11:28 a.m. , the meeting of the Mayor and Common Council and the Community Development Commission recessed to Closed Session for the following: A. to confer with the attorney regarding pending litigation which has been initiated formally to which the Commission is a party pursuant to Government Code Section 54956. 9 (a) as follows: ; B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (b) (1) , as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (c) , so that the Commission may decide whether to initiate litigation; D. to give instruction to the Commission' s negotiator on the purchase of property pursuant to Government Code Section 54956.8. The real property which the negotiations concern is generally located at: RECESSED MEETING At 11 :59 a.m. , Chairman Holcomb recessed the meeting of the Mayor and Common Council and the Community Development Commission to a luncheon workshop. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -8- FEBRUARY 1, 1993 IA LUNCHEON WORKSHOP (Community Development Commission) At 12 :24 p.m. , Chairman Holcomb called the luncheon workshop of the Mayor and Common Council and the Community Development Commission to order. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb: Commission Members Jack Reilly; Ralph Hernandez; Michael Maudsley; Valerie Pope-Ludlam and Norine Miller. Absent: Commission Members Esther Estrada and Tom Minor. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Manager, Housing Division; James Penman, City Attorney; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; and La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Eddie Negrete, Council Candidate, First Ward; Wayne Tulley, Emmerton School Principal; Faye Pointer, Coordinator of Emmerton School Project; Janet Reynolds, San Bernardino Unified School District; Courtney Buse, Guest; Ron Jurgenson, Guest; Maria Hunt, The Sun Newspaper. 11. ARDEN GUTHRIE REHABILITATION Kenneth J. Henderson, Executive Director, Development Department, explained to the Commission actions which had taken place in order to prepare a strategy for the comprehensive revitalization of the Arden Guthrie area. He stated that staff was working with the County and Emmerton School regarding this project and also to implement a focus neighborhood strategy. David Edgar, Manager, Housing Division, stated five (5) points which he felt would help achieve rehabilitation of the Arden Guthrie area: 1. Strategy deals with immediate and permanent changes. 2 . Strategy deals with property and neighborhood improvements. 3. Strategy identifies social issues. 4. Strategy is a buy-product and refinement of the original HomeAid Study. 5. Strategy attempts to be needs driven. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -9- FEBRUARY 1, 1993 I� Mr. Edgar indicated that there were six (6) acres available in the area and explained how he felt the land could be used. He stated that staff had considered converting one of the four-plex units into a multi-use facility. He stated the facility could house a health facility, a meeting room, library, and also in-house project managers. He also recommended certain streets within the complex be cul-de-saced to provide better security in the area. He explained that Caltrans was willing to lease property that it owns in the area to the Agency for $1 a year. He stated the Agency could green belt the area and that the police felt it would make a much safer environment. Mr. Edgar indicated that a non-profit organization desired to acquire 24 of the buildings located in Arden Guthrie and stated that the acquisition would help increase and complement other rehabilitation efforts. He said that Los Padrinos, a community group, would provide on-going graffiti clean-up and neighborhood abatement for the area. Mr. Edgar felt that it was essential to have individuals in the area on an on-going basis for this project to be a success. He stated that as additional units are purchased, the cost to the Agency in maintaining the project would decrease. He also indicated that Code Enforcement Division staff would also work in the area, along with Agency staff, Emmerton School and the County. Commission Member Hernandez questioned how this project would affect the lawsuit. Mr. Henderson stated that staff had met with Mr. Penman and Mr. Barlow regarding the lawsuit and asked Mr. Penman to explain. James Penman, City Attorney, stated that based on the items at hand, it would not affect the lawsuit. He said that he spoke with Mr. Arias, attorney for the plaintiffs, and he did not feel this was a problem as long as he was kept apprised of all actions. Chairman Holcomb felt this would be a positive effect on the lawsuit. He stated that it would show the current owners and residents that the City was not out to destroy the neighborhood only improve it. Chairman Holcomb stated that anticipated funding for the project would come from the Inland Valley Development Agency (IVDA) . Commission Member Maudsley stated that this item was presented to the Redevelopment Committee but was voted down. He explained that staff was directed to speak to the city of Montclair to discuss how its rehabilitation project resulted. He indicated that it would be difficult to rehabilitate a neighborhood such as Arden Guthrie and stressed that a flaw in staff's plan was that only a portion of the neighborhood would be rehabilitated. REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-7 -10- FEBRUARY 1, 1993 IA Commission Member Hernandez indicated that more private ownership of the four-plexes was needed to help rehabilitate the area. He stated that many private owners in the development had done a good job keeping their four-plexes up to code. He also expressed concern regarding the cost of the project and previous funding of $90, 000 to complete a similar survey. Wayne Tulley, Principal, Emmerton School, indicated that Emmerton was a year-round school with approximately 250 students off-track during the season. He stressed a need for activities to be conducted in the area to keep the students occupied. Discussion ensued regarding a park being located in the Arden Guthrie area. Commission Member Pope-Ludlam questioned the cost of personnel to maintain a park. Chairman Holcomb indicated that if Arden Guthrie could be revitalized, the City revenue would increase due to vacant property in the area being rented. He also indicated that the revitalization would result in a decrease in crime, graffiti and trash. Janet Reynolds, San Bernardino School District, felt the school district had assumed a major role in the community. She emphasized that Faye Pointer had made a major impact on the residents of Arden Guthrie and that she worked well with those residents. Faye Pointer, Coordinator, Emmerton School Project, supported the revitalization concept, but felt staff should address ownership. She indicated that she would like the residents to achieve the goal of owning their units. Commission Member Miller questioned the number of parents in the area versus the number of gang members. Ms. Pointer indicated that there were approximately 80% family residents in the area. Chairman Holcomb stated that before the units could become owner occupied, we must first achieve control of the area. He said that most owners do not wish to participate in the CC&R program. Ron Jurgenson, Property Owner, Arden Guthrie, indicated that he came to San Bernardino about 8 months ago and is currently in escrow for six (6) four-plexs. He emphasized that if code enforcement and police were more active in the area, it would expediously increase the revitalization efforts being proposed. He stated that current security for the area were not active in securing the area. REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -11- FEBRUARY 1, 1993 I� Mr. Tulley agreed that a park would be essential for the children in the area but stated that the other elements regarding the implementation of the revitalization efforts were more important. Chairman Holcomb stated that complaints had been received from property owners regarding children playing in their yards. He stressed that open space was a critical need in the area. Commission Member Miller felt the neighborhood should be cleaned- up before a park is created. Mr. Henderson explained to the Commission that the order of descriptions listed in the presentation, was not the order in which various projects would be implemented. He also indicated that if the item was approved, subsequent approval would be needed from IVDA regarding the funding. Commission Member Hernandez questioned private owner's willingness to sell the units to the residents. He felt this concept should be further explored. Mr. Jurgenson stated that it would take $44, 000 a year income for a person to qualify to purchase a unit. He indicated that buy-downs would need to be established in order to help the residents qualify. Discussion ensued regarding the implementation of projects and the order of need. Mr. Henderson stated that if the Commission did not appropriate funding for this project, the strategy should be approved. He indicated if all funds were not received from IVDA, funds could be appropriated from the Redevelopment Agency. He said that this workshop was presented to the Commission to allow them to focus and understand the importance of the overall strategy. Commission Member Reilly stated that a COP facility was located in the Waterman Gardens and recommended a COP facility be placed in the Arden Guthrie area. Commission Member Reilly and Commission Member Miller indicated they were ready to support this concept. Commission Member Maudsley questioned why staff did not speak with the "King" people as he suggested. He also stated if the current security guards were not completing their job, staff should investigate. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 1:48 P.M. Commission Member Hernandez indicated that other areas of the City required funds and recommended the Commission look at other areas of the City needing assistance. COMMISSION MEMBER MILLER WAS EXCUSED AT 1:49 P.M. COMMISSION MEMBER MAUDSLEY WAS EXCUSED AT 1:50 P.M. REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-7 -12- FEBRUARY 1, 1993 I� Larry Way, manager of 22 Arden Guthrie units, stated that 95% of his tenants were welfare recipients and 80% of the 95% were good residents. He indicated that the youth were destroying the area and indicated that they needed guidance. He felt that the overall concept presented by staff would be beneficial to the area. Chairman Holcomb stated the item would be placed on the next regular agenda for February 15, 1993. 11. ADJOURNMENT At 1:58 p.m. , the meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, February 15, 1993, at 11:00 a.m. , in the Council Chambers of City Hall, North "D" Street, San Bernardino, California. Respectfully submitted: KENNETH J. HENDERSON Executive Director/ Secretary to the Commission REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-7 -13- FEBRUARY 1, 1993 MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO M I N U T E S JOINT REGULAR MEETING February 15, 1993 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Chairman W. R. Holcomb at approximately 11:35 a.m. , on Monday, February 15, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller (late) . STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; and La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun Newspaper. ---------------- CONSENT CALENDAR Commission Member Hernandez requested that item number "5", be removed from the consent calendar. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 1 - FEBRUARY 15, 1993 1 E3 Commission Member Reilly made a motion, seconded by Commission Member Estrada, that the Consent Calendar items numbered "1" through "14" be adopted except for item number "5", respectively. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Estrada, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, March 22, 1993. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Reilly made a motion, seconded by Commission Member Estrada, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of January 20, 1993 and January 25, 1993, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Administrative Services 3. INVESTMENT POLICY (Community Development Commission) Commission Member Reilly made a motion, seconded by Commission Member Estrada, to approve and adopt the Development Department's Annual Statement of Investment Policy for the year 1993. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent.: Commission Member Miller. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 2 - FEBRUARY 15, 1993 4. SOUTHEAST INDUSTRIAL PARK BOND REFUNDING (Community Development Commission) Commission Member Reilly made a motion, seconded by Commission Member Estrada, to approve the proposed refunding of the Southeast Industrial Park Tax Increment Bonds of 1981 and 1985, and direct staff to work with bond counsel to prepare the necessary documents to be brought back before the Commission for approval. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Development Department 6. LANDSCAPING OF OLD NAUGLES RESTAURANT (Community Development Commission) Commission Member Reilly made a motion, seconded by Commission Member Estrada, to approve funding fifty percent (50%) , of the landscape improvements, not to exceed $12, 000, for the Old Naugles Restaurant property located on the southwest corner of Lincoln and Highland Avenue at 1033 West Highland Avenue, and authorize the Chairman and Executive Director to develop and execute agreements accordingly. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 7. APPLICATION FOR EMERGENCY SHELTER GRANT PROGRAM (ESGP) FUNDS FOR FY 1993-94 (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada, to approve the attached Department of Housing and Urban Development (HUD) Application, for F5' 1993/94 Emergency Shelter Grant Program (ESGP) Assistance funds. Councilman Reilly made a motion, seconded by Councilwoman Estrada, to authorize the Mayor, as Chief Executive Officer, to enter into contractual agreements with those qualified non-profits ultimately selected for participation in the Emergency Shelter Grant Program. JOINT REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-8 - 3 - FEBRUARY 15, 1993 The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. Public Works 8. INSTALLATION OF SEWER IN HARDT, GOULD AND DAVIDSON STREETS - CDBG FUNDS (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada that the plans for installation of sewer in Hardt, Gould and Davidson Streets, east of Tippecanoe Avenue, in accordance with Plan No. 8775, be approved; and that the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. 9• INSTALLATION OF SEWER MAINS BETWEEN CALIFORNIA AND STATE, AND IN "K"STREET - CDBG FUNDS (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada that the following resolution be approved and adopted: RESOLUTION NUMBER 93-41 RESOLUTION OF THE CITY OF SAN BE;RNARDINO AWARDING A CONTRACT TO GRGO & GORDON GRBAVAC CONSTRUCTION COMPANY, INC. , FOR INSTALLATION OF SEWER MAINS BETWEEN CALIFORNIA STREET AND STATE STREET, AND IN "K" STREET. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. 10. ADVERTISE FOR BIDS - SWIMMING POOLS AT VARIOUS LOCATIONS - (CDBG FUNDS (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada, that the plans for improvements to swimming pools at various locations, in accordance with Plan No. 8891, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. JOINT REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-8 _ q - FEBRUARY 15, 1993 The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. 11. ADVERTISE FOR BIDS - COMMUNITY CENTERS - (CDBG FUNDS) (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada, that the plans for general :improvements to the Delmann Heights Center & Rudy Hernandez Center, in accordance with Plan No. 8890, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. 12. ADVERTISE FOR BIDS - LIGHTING FOR VARIOUS FACILITIES - (CDBG FUNDS) (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada, that the plans for installation of lighting improvement for various facilities, in accordance with Plan No. 8892, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. 13. ADVERTISE FOR BIDS - BOYS AND GIRLS CLUB, RUBEN CAMPOS, LYTLE CREEK COMMUNITY, NICHOLSON 6 SENIOR CITIZENS CENTERS - (CDBG FUNDS) (Mayor and Common Council) Councilman Reilly made a motion, seconded by Councilwoman Estrada, that the plans for general improvements to the Boys and Girls Club, Ruben Campos, Lytle Creek Community, Nicholson and Senior Citizens Centers, in accordance with Plan No. 8889, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 5 _ FEBRUARY 15, 1993 /13 14. ADVERTISE FOR BIDS - MAIN STREET REVITALIZATION PROGRAM (Community Development Commission) Commission Member Reilly made a motion, seconded by Commission Member Estrada, that the plans for construction of improvements under the Main Street Revitalization Program - Phase II, in accordance with Plan No. 8812, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; ;Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 5. EQUIPMENT PURCHASE COUNCIL OFFICE (Community Development Commission) Commission Member Hernandez expressed concern over the Agency paying the total cost for the laser computer being located in the Council Office. He stated that since the computer would be used to accommodate both Agency and City employees, the cost should be divided. Commission Member Estrada made a motion, seconded by Commission Member Reilly, to approve an increase to the Economic Development Agency's capital equipment budget line item by $2, 200 for the purchase of a laser printer for the Council Office. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Maudsley; Minor; Pope-Ludlam. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Miller. END OF CONSENT CALENDAR 15. CHANGE ORDER NO. 4 - EXPANSION OF PIONEER CEMETERY (Community Development Commission) Commission Member Estrada made a motion, seconded by Commission Member Reilly, that Change Order No. Four to the contract with Bob Britton, Inc. , for expansion of Pioneer Cemetery, Phase I, in accordance with Plan No. 8593, be approved; to expand the scope of the contract to include the remaining frontage along 7th Street. , at an estimated increase in the contract price of $92, 037.32; from $91, 481. 66 to $183, 518. 98 . JOINT REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-8 - 6 _ FEBRUARY 15, 1993 16 Commission Member Hernandez questioned the reasoning for the expansion of the cemetery. He asked if the property would be sold. COMMISSION MEMBER MILLER ARRIVED AT 11:39 A.M. Chairman Holcomb indicated that the expansion would make the cemetery more presentable to the public even if the Agency retains the property. Commission Member Estrada stated that the work being proposed for the cemetery would be essential given the layout and problems the cemetery has had. Commission Member Maudsley expressed concern regarding the amount of money being proposed for this project and also the increase in the change order. Roger Hardgrave, Director of Public Works, discussed the item and the change order with the Commission indicating that downtime of approximately 8 weeks would occur if the department solicited additional bids. He also stated that it was possible for the cost to increase even more. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Minor; Pope-Ludlam; Miller. Noes: Commission Member Maudsley. Abstain: None. Absent: None. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 11:45 A.M. Development Department 16. STEWARD OWNER PARTICIPATION AGREEMENT - 570 WEST FOURTH STREET (Community Development Commission) Commission Member Maudsley expressed his concern regarding this item indicating that it would increase the parking problem that already exists. COMMISSION MEMBER ESTRADA WAS EXCUSED AT 11:46 A.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 11:46 A.M. Chairman Holcomb stated that a plan was in the works to eliminate the parking problem that would be discussed in closed session. He recommended this item be discussed after closed session. COMMISSION MEMBER ESTRADA RETURNED AT 11:48 A.M. JOINT REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-8 - 7 _ FEBRUARY 15, 1993 /o 17. CONSIDERATION OF INLAND VALLEY DEVELOPMENT AGENCY REQUEST REGARDING DEFENSE, FINANCE AND ACCOUNTING SERVICES PROPOSAL (Community Development Commission) Chairman Holcomb explained this item to the Commission indicating that it would allow the Agency to financially assist the Inland Valley Development Agency (IVDA) in the event it could not come up with the funds needed to house the Defense Finance and Accounting Service Center on Norton Air Force Base (NAFB) property. He stated the request would be for the Agency to purchase the Child Care Center or the Non-Commission Officer Academy and provide the funds to IVDA. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated the funds would come from bond proceeds. Commission Member Estrada indicated that the Agency had allocated $17 million of the $19 million in bond proceeds. Timothy Sabo, Special Counsel, Sabo & Green, indicated that the government wanted to ensure that San Bernardino's intent to fund this money was valid. Commission Member Minor made a motion, seconded by Commission Member Estrada, to authorize acquisition of the Day Care Center on Norton Air Force Base conditioned upon Defense Finance and Accounting Services selecting the Norton site for a 4, 000 employee facility; acquisition shall be accomplished in the manner and in the following priority: 1. Acquisition by the City of San Bernardino by public benefit conveyance for the Air Force; or 2. Acquisition by the Inland Valley Development Agency if and to the extent funds are legally available; or 3. Acquisition by the Economic Development Agency be negotiated fair market value purchase from the Air Force at a price not to exceed fair market value. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. CLOSED SESSION 18. ADJOURNED TO CLOSED SESSION At 11:56 a.m. , the meeting of the Mayor and Common Council and Community Development Commission recessed to Closed Session for the following: JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 8 _ FEBRUARY 15, 1993 /f B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (b) (1) , as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (c) , so that the Commission may decide whether to initiate litigation; D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956. 8. The real property which the negotiations concern is generally located at: MEETING RECONVENED ' At 12:20 p.m. the meeting of the Mayor and Common Council and the Community Development Commission was called to order. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb; Commission Members Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam and Norine Miller. Absent: Commission Member Esther Estrada. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; and La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun Newspaper. Chairman Holcomb briefly explained for the public' s information that during closed session, the Commission discussed the acquisition of property located at 4th and "E" Street. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 9 _ FEBRUARY 15, 1993 14�1 RS-1 ARROW VISTA HOUSING DEVELOPMENT DDA MODIFICATIONS (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to authorize staff to amend the existing Arrow Vista Housing Development Disposition and Development agreement (DDA) by and between Dukes-Dukes and Associates the Redevelopment Development Agency as it relates to providing homebuyers assistance, and authorize the Executive Director and Mayor to make all necessary changes and execute any and all documents to accomplish this modification. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. RS-2 DUKES-DUKES AND ASSOCIATES REAL PROPERTY PURCHASE AGREEMENT (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, that the form motions be approved. Commission Member Maudsley expressed concern regarding the Agency funding this loan. CHAIRMAN HOLCOMB WAS EXCUSED AT 12:24 P.M. CHAIRMAN HOLCOMB RETURNED AT 12:25 P.M. Commission Member Pope-Ludlam asked if the Agency would use bonds as a source of repayment. Kenneth J. Henderson, Executive Director, Development Department, indicated that the Agency did not intend to use bonds, but explained that it could be done if the Commission desired. loan. Commission Member Maudsley asked the cost to foreclose on this Mr. Henderson explained that the Agency would have to pay off the $200, 000 loan before it could start foreclosure proceedings. Discussion ensued regarding the risks involved in funding this loan as a second position party. Commission Member Maudsley asked that the motions listed on the staff report be approved individually. JOINT REGULAR MEETING COMMISSION MINUTES KJH:lmp:C-001-8 - 10 - FEBRUARY 15, 1993 /6 Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to authorize purchase of the Dukes-Dukes and Associates owned thirty-eight (38) lot subdivision located at the northeast corner of 16th and California Street at a price not-to- exceed $700, 000 and authorize the Chairman and Executive Director to execute all necessary documents in connection with implementation of the attached Real Property Purchase Agreement. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent: Commission Member Estrada. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to authorize a loan agreement between Dukes-Dukes and Associates and the Redevelopment Agency in the amount of $200, 000, said loan to be secured by a Second Trust Deed against Dukes-Dukes and Associates owned properties. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Minor; Pope-Ludlam; Miller. Noes: Commission Member Maudsley; Miller. Abstain: None. Absent: Commission Member Estrada. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to authorize a $900, 000 loan from the Bank of San Bernardino, for the expressed purpose of effectuating Motions A and B, and authorize the Chairman and Executive Director to execute any and all documents in conjunction with the transaction. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Minor; Pope-Ludlam; Miller. Noes: Commission Member Maudsley; Miller. Abstain: None. Absent: Commission Member Estrada. COMMISSION MEMBER ESTRADA ARRIVED AT 12:30 P.M. 16. STEWARD OWNER PARTICIPATION AGREEMENT - 570 WEST FOURTH STREET (Community Development Commission) Commission Member Minor made a motion, seconded by Commission Member Pope-Ludlam, to authorize the Executive Director to execute an Owner Participation Agreement with Allan Steward, Inc. , for the acquisition and renovation of the former Southern California Gas Company building located at 570 West Fourth Street in the Central City North project area, to make necessary changes in said Agreement as approved by Agency Special Counsel and determined in final negotiations, and to execute all documents necessary to implement and complete said Agreement; and authorize modification of the Agency's 1992-1993 budget to provide for a $350, 000 investment by the Central City project area in the form of a secured loan to Allan Steward, Inc. JOINT REGULAR MEETING KJH:1mp:C-001-8 COMMISSION MINUTES - 11 - FEBRUARY 15, 1993 /10 The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RECESSED MEETING At 12 :31 p.m. Chairman Holcomb recessed the meeting of the Mayor and Common Council and the Community Development Commission until 2:00 p.m. MEETING RECONVENED At 4 :55 p.m. the meeting of the Mayor and Common Council and the Community Development Commission was called to order. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb; Commission Members Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam and Norine Miller. Absent: Commission Member Esther Estrada. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; and Deborah L. Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun Newspaper. RS-3 NEW POLICE FACILITY (Community Development Commission) Commission Member Miller made a motion, seconded by Commission Member Minor to continue this item until March 8, 1993. Commission Member Hernandez expressed concern regarding this item not being discussed at the Redevelopment Committee meeting of February 4, 1993 and requested the Commission take action on this item. He emphasized that the cost for the police facility had increased and he felt further study regarding the facility should be done. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 12 - FEBRUARY 15, 1993 !16 Chairman Holcomb stated that this item would be discussed at the Redevelopment Committee meeting on February 18, 1993. The motion carried by the following vote: Ayes: Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Estrada. CLOSED SESSION RS-4. ADJOURNED TO CLOSED SESSION At 5: 00 p.m. the meeting of the Mayor and Common Council and the Community Development Commission recessed to Closed Session for the following: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (b) (1) , as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956. 9 (c) , so that the Commission may decide whether to initiate litigation; D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956. 8 . The real property which the negotiations concern is generally located at: END OF CLOSED SESSION --------------------- RS-5 ADJOURNMENT At 5:29 p.m. , the meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, March 8, 1993, at 11: 00 a.m. , in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: KENNETH J. HENDERSON Executive Director/ Secretary to the Commission JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:C-001-8 - 13 - FEBRUARY 15, 1993 /16 MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO M I N U T E S ADJOURNED REGULAR MEETING February 22, 1993 9: 00 a.m. The Adjourned regular meeting of the Mayor and Common Council and the Community Development Commission, was called to order by Chairman W.R. Holcomb, at approximately 9: 01 a.m. , on Monday, February 22, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with following members present: Chairman W.R. Holcomb; Commission Members Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam and Norine Miller. Absent: Commission Member Esther Estrada. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Henry Empeno, Deputy City Attorney; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; and La Vonda Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Gene Wood, E.H. Woods & Associates; Maria Hunt, The Sun Newspaper. 1 . SAN BERNARDINO COMMUNITY HOSPITAL - PROFESSIONAL OFFICE BUILDING (Community Development Commission) Commission Member Valerie Pope-Ludlam made a motion, seconded by Commission Member Minor, that the need to take action on the San Bernardino Community Hospital Professional Office Building arose after the posting of the agenda. Motion carried by the following vote: Ayes: commission Member Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes : None. Abstain: None. Absent: Commission Member Estrada. ADJOURNED REGULAR MEETING COMMISSION MINUTES KJH:lag:2CDC22.MIN 1 FEBRUARY 22, 1993 fc Kenneth J. Henderson, Executive Director, Development Department made a correction regarding the size of the professional office building indicating the motion should read 59, 000 square feet and not 33, 000. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Minor, to approve in concept the guarantee by the Redevelopment Agency of an $8 . 6 million construction loan from the WHITEHALL Group to Arrowhead Health Care System for the purpose of developing a 59, 000 square foot professional office building with such conceptual approval subject to the drafting and review of all appropriate documents and approval of same by the Community Development Commission. Commission Member Hernandez expressed concern with the WHITEHALL Group picking up three percent (30) in closing costs and that the Agency was taking a risk. Mr. Henderson stated this was a preliminary commitment and that the item is for conceptual approval only. He also stated that it would allow staff and legal counsel time necessary to work with the WHITEHALL Group and hospital staff to development specific deal points . Mr. Henderson stated that the preliminary commitment date was set for March 4, 1993 based on the Commission meeting on March 2, 1993 . He also stated in order to meet the expiration date and ensure specific deal points, conceptual approval was needed. Commission Member Maudsley asked what the Agency' s actual capacity of loan guarantees and questioned the substantial amount of money being guaranteed. Mayor Holcomb stated that he spoke with Mr. Gene Wood, Financial Consultant, who advised him that this would have no adverse impact on the Agency' s loan capacity. Commission Member Pope-Ludlam stated the necessity of approval of the conceptual commitment, the favorable interest rate, and that if delayed, the interest rate may rise another point making the deal infeasible. She also stated the importance of the Community Hospital to the City of San Bernardino and the regional medical facilities in the valley. Mr. Gene Wood, Financial Consultant, E.H. Woods & Associates, explained the loan terms indicating that the loan guarantee is based on a long term bond rate which is 7 . 10 . He stated that the rate would be effective until March 4, 1993 . Commissioner Member Hernandez asked if the Commission approved the concept, the City is in no way committed to the loan. ADJOURNED REGULAR MEETING COMMISSION MINUTES KJH:laq:2CDC22.MIN 2 FEBRUARY 22, 1993 l Mr. Henderson, stated that yes, the City is not committed to the loan and that it will be brought back to the Commission for final approval . Motion carried by the following vote: Ayes : Commission Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes : None. Abstain: None. Absent: Commission Member Estrada. 2 . ADJOURNED TO CLOSE SESSION There were no items for discussion in Closed Session. 3 . ADJOURNMENT At 9: 20 a.m. , the Adjourned Regular meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, March 8, 1993, at 11 : 00 a.m. , in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: KENNETH J. HENDERSON Executive Director/ Secretary to the Convnission 2cdc22.min ADJOURNED REGULAR MEETING COMMISSION MINUTES KJH:lag:2CDC22.MIN 3 FEBRUARY 22, 1993 is