HomeMy WebLinkAboutR4- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: Barbara J. Lindseth Subject: ARROWHEAD HEALTH CARE
Acting Director SYSTEM
Date: January 3, 1995
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Synopsis of Previous Commission/Council/Committee Action(s):
On February 22, 1993, the Community Development Commission approved in
concept a $8.6 million loan guarantee for Arrowhead Health Care System
for the purpose of developing a professional office building.
(Continued on Page 2)
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Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission adjourn the
meeting of January 9, 1995 until Thursday, January 12,
1995 at 9:30 a.m. , in the Council Chambers of City Hall,
300 North "D" Street, San Bernardino, California, for a
public hearing and action on the Arrowhead Health Care
System guarantee.
(Mayor and Common Council)
MOTION B: That the Mayor and Common Council adjourn the meeting of
January 9, 1995 until January 12, 1995 at 9:30 a.m. for a
public hearing and action on the Arrowhead Health Care
System guarantee.
Adminis"rator
Barbara J. Lindseth
Acting Director
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Contact Person(s): Tim Steinhaus/John Wood Phone: 5081
Project Area(s): Northwest (NW) Ward(s) : Sixth
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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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/9/1/995�f
Agenda Item Number:rl I
Synopsis of Previous Commission/Council/Committee Action(s) Continued
On November 15, 1993, the Community Development Commission approved an
Agency loan guarantee related to the construction of a professional
office building.
On December 19, 1994, the Community Development Commission set a public
hearing for January 9, 1995 at 11:00 a.m.
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/9/1995
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
Arrowhead Health Care System
On February 22, 1993, the Community Development Commission approved in
concept the guarantee by the Agency of an $8.6 million construction
loan from the Whitehall Group to Arrowhead Health Care System (parent
company of San Bernardino Community Hospital) 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 subsequent approval by the Commission.
On November 15, 1993, the Commission approved a loan guarantee related
to the construction of the professional medical office building for the
San Bernardino Community Hospital and authorized execution of related
documents. However, that transaction was not completed.
Currently, Arrowhead Health Care System has secured a new lender, North
Atlantic Life Insurance Company of America and Northern Life Insurance
Company ("the Lenders"), to finance the project and the parties are
preparing documents for the transaction. The amount of the loan is
estimated at $9.2 million, plus certain costs and fees. The Agency
guarantee is in the form of a purchase contract/put option, and due to
the form of the transaction, the Lender's counsel has requested that
the Agency hold a public hearing pursuant to Health and Safety Code
Section 33679, which requires a public hearing prior to the use of tax
increment revenues to purchase real property.
On December 19, 1994, a public hearing was set for January 9, 1995 at
11:00 a.m. However, notice of the public hearing could not be
published on time for the January 9, 1995 meeting and was therefore
published for a public hearing on January 12, 1995 at 9:30 a.m. It is
requested that the meeting be continued until January 12, 1995 at 9:30
a.m.
Based upon the foregoing, staff recommends adoption of the form motion.
Barbara J. Lindseth, Acting Director
Development Department
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/9/1995
Agenda Item Number: