HomeMy WebLinkAbout04- Development Department D VELOPMENT DEPARTME ,, f
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J. HENDERSON SUBJECT: REDEVELOPMENT AGENCY
Executive Director LINE OF CREDIT
DATE: March 2, 1994
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Synopsis of Previous Commission/Council/Committee Action(s):
On July 2, 1990, the Community Development Commission authorized the execution of a Letter of Acceptance
for a Line of Credit with Wells Fargo.
On October 1, 1990, the Community Development Commission authorized the negotiation of an agreement with
Wells Fargo Bank for investment services.
On December 10, 1990, the Community Development Commission authorized lines of credit with Wells Fargo
Bank.
(Synopsis Continued to Next Page...)
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Recommended Motion(s).
(Community Development Commission)
MOTION: That the Community Development Commission receive and file the attached staff report.
4 — �kAm�1
Adrofnistrator KENNETH J. HE ERSON
Executive Director
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Contact Person(s): Kenneth J. Henderson/Mike Trout Phone: 5081
Project Area(s): All Ward(s): 1-7
Supporting Data Attached: Staff Report;
FUNDING REQUIREMENTS: Amount: $N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:RMT:lag:03-O1-Ol.cdc COMMISSION MEETING AGENDA
MEETING DATE: 03/07/19944
Agenda Item Number: t
DEVELOPMENT DEPAR MENT
REQUEST FOR COMMISSION/COUNCIL ACTION
Line of Credit
Page -2-
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Synopsis of Previous Commission/Council/Committee Action(s) Continued
On April 17, 1991, the Community Development Commission authorized the Executive
Director to make certain financial guarantees with regard to the West Side Plaza Project.
On June 3, 1991, the Community Development Commission authorized the amendment of
certain lines of credit with Wells Fargo Bank and the execution of certain documents in
connection therewith.
On February 17, 1992, the Community Development Commission approved a one year
extension of the Lines of Credit with Wells Fargo Bank.
On March 11, 1993, the Redevelopment Committee recommended to the Community
Development Commission approval of this item.
On March 22, 1993, the Community Development Commission approved a one year
extension of the Lines of Credit with Wells Fargo Bank.
On February 21, 1994, the Community Development Commission directed staff to
determine if betters terms for a $10,000,000.00 line of credit, than those of certain lines
of credit with Wells Fargo Bank, were available in the open market and to obtain a 30
day extension from Wells Fargo Bank, on the March 1, 1994 maturity date, for certain
lines of credit.
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KJH:RMT:1ag:03-01-01.cdc COMMISSION MEETING AGENDA
MEETING DATE: 03/07/1994
Agenda Item Number:
DEVELOPMENT DEPARTMENT
STAFF REPORT
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Redevelopment Agency Line of Credit
As directed by the Community Development Commission, staff has contacted
E. H. Wood & Associates for the purpose of determining which lending institutions were of
sufficient size to accommodate a $10,000,000.00 line of credit. E. H. Wood & Associates
had previously contacted over fifteen (15) west coast lending institutions including local
institutions such as Bank of San Bernardino, Commerce Bank, Riverside National Bank and
Chino Valley Bank. It was determined that the only institutions of sufficient size were Bank
of America, Union Bank and First Interstate Bank of California.
Staff has sent inquiries to these three (3) lending institutions concerning a $10,000,000.00 line
of credit. Only Bank of America and First Interstate responded to staff initial request. In
each case these lending institutions will require 2 - 3 weeks to review three (3) years of
Agency financial statements in order to provide the Development Department a proposal letter
for the line of credit.
If these proposal letters provide terms more favorable than those of the current Well Fargo
terms, staff would then invite Wells Fargo to either match or better the proposed terms from
the other two (2) lending institutions. Wells Fargo has granted a thirty (30) day extension
and staff believes the 30 day extension provided should be sufficient time to complete the
initial process.
Staff recommends adoption of the form motion.
KkI04TH J. ENDERSON, Executive Director
Development Department
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KJH:RMT:1ag:03-01-01.cdc COMMISSION MEETING AGENDA
MEETING DATE: 03/07/1994
Agenda Item Number: