HomeMy WebLinkAboutR1- 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 9, 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.
(Synopsis Continued on Page 3)
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Recommended Motion(s):
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
(Mayor and Common Council)
MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THAT CERTAIN PURCHASE AGREEMENT BY AND
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND ARROWHEAD HEALTH CARE SYSTEMS, INC. AND
CERTAIN OTHER DOCUMENTS RELATED THERETO PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33679.
(Motions Continued on Page 2)
Administrator 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: 1/12/1995x'
Agenda Item Number: ,r)
Recommended Motion(s) Continued
(Community Development Commission)
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
APPROVING THAT CERTAIN PURCHASE AGREEMENT, THAT CERTAIN
OWNER PARTICIPATION AGREEMENT AND DOCUMENTS RELATED
THERETO IN CONNECTION WITH THE PROVISION OF FINANCIAL
ASSISTANCE TO ARROWHEAD HEALTH CARE SYSTEMS, INC. AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH.
MOTION C: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION MAKING
CERTAIN DETERMINATIONS IN ACCORDANCE WITH HEALTH AND
SAFETY CODE SECTION 33679.
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/12/1995
Agenda Item Number: �_
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.
On January 9, 1995, the Community Development Commission adjourned to
January 12, 1995 at 9:30 a.m.
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/12/1995
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 $9.8 million, including 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.
In order for Arrowhead Health Care Systems to obtain construction
financing of the property, the Agency must guarantee a loan through a
purchase agreement/put option in an amount not to exceed $9.8 million.
The medical office building is projected to attract qualified
physicians and support staff from within the City and across the United
States in order to increase the quality of health care provided to the
residents :of the City, and will benefit the San Bernardino Community
Hospital in order to allow it to maintain its existence within the
Northwest Redevelopment Project Area. Whereby, the increase in
physicians and support staff from outside of the area will increase the
tax base of the Northwest Project Area and the surrounding project
areas.
Further, in February 1992, the Commission prioritized, through the
mid-year budget process, the amount of $1,250,000 to be set-aside for
the purpose of assisting Arrowhead Health Care Systems with off-site
improvements, as outlined in the Owner Participation Agreement, of
which approval is asked for.
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/12/1995
Agenda Item Number: �_
Economic Development Agency
Arrowhead Health Care Systems
Staff Report
Page - 2 -
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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. . The
January 9, 1995 meeting was adjourned to January 12, 1995 at 9:30 a.m.
Based upon the foregoing, staff recommends adoption of the form motion.
— X,�"' i ,-1'
Barbara J. Lindseth, Acting Director
Development Department
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BJL:1985A COMMISSION MEETING AGENDA
Meeting Date: 1/12/1995
Agenda Item Number:
JAN 10 '95 01:11PM P.15
1 RESOLUTION NO.
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT
$ COMMISSION APPROVING THAT CERTAIN PURCHASE
AGREEMENT, THAT CERTAIN OWNER PARTICIPATION
AGREEMENT AND DOCUMENTS RELATED THERETO IN
CONNECTION WITH THE PROVISION OF FINANCIAL
ASSISTANCE TO ARROWHEAD HEALTHCARE SYSTEMS, INC.
AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION
6 THEREWITH
7 WHEREAS, the Redevelopment Agency of the City of
8 San Bernardino (the "Agency") is a public body corporate ants
9 politic organized and existing pursuant to Health and Safety Code
10 Section 33000, gt fig. , and has certain redevelopment powers
11 pursuant thereto; and
12
13 WHEREAS, in or about November 15, 1993, the Commission
14 approved a loan guaranty to Arrowhead Healthcare System, Inc.
15 ("Arrowhead") in connection with the construction of a
16 professional medical office building (the "Project") which would
17 provide support to the San Bernardino Community Hospital; and
18
19 WHEREAS, Arrowhead has secured lenders, Northern Life
20 Insurance Company, a Washington oorporation, and the North
21 Atlantic Life zn'surance Company of America, a Nov York
22 corporation ("Lenders") , which have agreed to finance the
23 construction of the Project if the Agency provides a guaranty in
24 the form of a purchase agreement/put option; and
25
28 WHEREAS, in order to complete the Project, Arrowhead
27 has requested that the Agency provide other assistance for off-
28
��
JAN 10 'I 95 01:11PM P.16
1 site improvements in the amount of One Million Two Hundred Fifty
2 Thousand Dollars ($1,250,000) (the "Agency Assistance") ; and
3
4 WHEREAS, the Agency deems it desirable and in the best
5 interests of the Agency, City and its residents, to assist
6 Arrowhead at this time in order to promote development within the
7 Northwest Redevelopment Project Area; and
S
9 WHEREAS, the purchase agreement/put option provided by
10 the Agency shall be in the form of a Purchase Agreement (the
11 "Purchase Agreement") by and among the Agency, Arrowhead and the
12 Lenders; and
13
14 WHEREAS, the Agency Assistance to be provided shall be
15 evidenced by an Owner Participation Agreement ("OPA") by and
16 between the Agency and Arrowhead; and
17
18 WHEREAS, the Commission has duly considered such
19 transactions and wishes to approve said transactions in the
20 public interests of the Agency.
21 �-
22 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION
23 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
24 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
25 FOLLOWS:
26
27
28
2 -
f
JAN 10 'I 95 01:12PM P.17
1 Section 1. Determinations. The Commission hereby
2 finds and determines that the provision of the Purchase Agreement
S to assist in the financing of the Project and the oPA in order to
4 provide the Agency Assistance will be of benefit to the Agency,
5 City and its residents as follows: the Project is projected to
6 (i) attract qualified medical professionals to the City and
7 therefore increase the quality of healthcare provided to its
8 residents; (ii) increase the number of physicians associated with
9 the San Bernardino Community Hospita37 in order for it to maintain
10 its existence; and (iii) create jobs for residents and increase
11 the tax base with the influx of new physicians and support staff
12 and therefore result in significant public benefits.
13
14 Section 2. Authorization and Approval of Purchase
15 Aaregmgnt. The Commission hereby authorizes and approves the
16 Purchase Agreement in the total principal amount of not to exceed
17 $9,800,000 pursuant to and in accordance with the terms of the
18 Purchase Agreement for the purpose of assisting Arrowhead in the
19 construction of the Project. The Commission hereby approves the
20 form of the Purchase Agreement as presently on file with the
21 secretary of the commission, together with any changes therein or
22 additions thereto as may be approved by the Chairman or Agency
23 Administrator or as necessary to incorporate other terms and
24 conditions when such terms and conditions have been ascertained.
25 The commission hereby further authorizes and directs that the
26 form of the Purchase Agreement be converted into the final form
27 thereof. The Chairman, Vice-Chairman or such other members of
28
_ 3 ..
JAN 10 '45 01:13PM P.18
1 the Commission and-the Agency Administrator are hereby authorized
2 and directed to execute and deliver, and the Secretary or
3 Assistant Secretary is hereby authorized and directed to attest
4 to and affix the seal of the Commission to, the final form of the
5 Purchase Agreement when the same has been prepared for and in the
6 name of and on behalf of the Agency and such execution and
7 delivery shall be deemed to be conclusive evidence of the
6 approval thereof. The Commission hereby authorizes the delivery
9 and performance of the Purchase Agreement.
10
it Section 3. Autriorf nation and A22roval of Deed of
12 Trust and other Security. The Commission hereby authorizes
13 and approves the Second Deed of Trust (the "Deed of Trust") to be
14 provided by Arrowhead for the'benefit of the Agency and any other
15 documents required to provide adequate security to the Agency
16 (the "Security Documents") for the provision of the Purchase
17 Agreement. The Commission hereby approves the forms of the Deed
18 of Trust and security Documents as presently on file with the
19 Secretary of the Commission, together with any changes therein or
20 additions thereto as may be approved by the Chairman or Agency
21 Administrator or as necessary to incorporate other terms and
22 conditions when such terms and conditions have been ascertained.
23 The commission hereby further authorizes and directs that the
24 forms of the Deed of Trust and Security Documents be converted
25 into the final forms thereof. The Chairman, Vice-Chairman or
26 such other members of the Commission and the Agency Administrator
27 are hereby authorized and directed to execute and deliver, and
28
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JAN 10'95 01:13PM P.19
1 the Secretary or Assistant Secretary is hereby authorized and
2 directed to attest to and affix the seal of the Commission to,
3 the final forms of the Deed of Trust and Security Documents when
4 the same has been prepared for and in the name of and on behalf
5 of the Agency and such execution and delivery shall be deemed to
6 be conclusive evidence of the approval thereof. The Commission
7 hereby authorizes the delivery and performance of the Deed of
8 Trust and Security Documents.
8
10 Sectign 4. Authorization of OPA and Aaencv
11 Assistance. The Commission hereby authorizes and approves the
12 Agency Assistance as evidenced by the OPA in the total principal
13 amount of not to exceed $11250,000 pursuant to and in accordance
14 with the terms of the OPA for the purpose of assisting Arrowhead
15 with off-site improvements for the Project. The Commission
16 hereby approves the form of the OPA as presently on file with the
17 Secretary of the Commission, together with any changes therein or
18 additions thereto as nay be approved by the Chairman or Agency
18 Administrator or as necessary to incorporate other terms and
20 Conditions when such terms and conditions have been ascertained.
21 The Commission hereby further authorizes and directs that the
22 form of the OPA be converted into the final form thereof. The
23 Chairman, Vice-Chairman or such other members of the Commission
24 and the Agency Administrator are hereby authorized and directed
25 to execute and deliver, and the Secretary or Assistant Secretary
26 is hereby authorized and directed to attest to and affix the seal
27 of the Commission to, the final form of the OPA when the same has
28
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f
I
JAN 10 195 01;14PM P.20
1 been prepared for and in the name of and on behalf of the Agency
2 and such execution and delivery shall be deemed to be conclusive
3 evidence of the approval thereof. The Commission hereby
4 authorizes the delivery and performance of the OPA.
5
6 Sectigm-1. official Apt&Mj. The Chairman, vice-
7 Chairman and other members of the Commission, the secretary,
8 Assistant Secretary, counsel to the Commission, the Agency
r
9 Administrator, Agency Counsel and any and all other members and
10 officere of the Commission and the Agency are hereby authorized
1Y and directed, for and in the name and on behalf of the Agency, to
12 do any and all things and to take any and all actions, including
13 but not limited to, execution and delivery of any and all
14 assignments, certificates, requisitions, agreements, notices,
15 consents, instruments of conveyance, warrants and other documents
16 which they, or any of them, may deem necessary or advisable in
17 connection with the execution and delivery of the Purchase
18 Agreement and supporting documentation, the OPA and the
19 consummation of the transactions described therein.
20
21
22
23
24
25
26
27
28
+ v r
JAN 10 '95 01:14PM P.21
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THAT
2 CERTAIN PURCHASE AGREEMENT, THAT CERTAIN OWNER PARTICIPATION
AGREEMENT AND DOCUMENTS RELATED THERETO IN CONNECTION WITH THE
PROVISION OF FINANCIAL ASSISTANCE TO ARROWHEAD HEALTHCARE
SYSTEMS, INC. AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION
4 THEREWITH
5 section 6. Effective bate. This Resolution shall
6 take effect from and after the date of its passage and adoption.
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly
y
9 adopted by the Community Development Commission of the City of
10 San Bernardino at a meeting
11 thereof, held on the day of ,
12 1995, by the following vote, to wit:
13 cemmiggier Menem®rs: AYES NAYS ABS'T'AIN APl
14 NEGRETE
CURLIN
15 HERNANDEZ
OBERHELMAN
16 DEVLIN
POPE-LUDLAM
17 MILLER
18
19 Secretary
20 The foregoing resolution is hereby approved this
day of , 1995.
22
Tom Minor, Chairman
23 Community Development Commission
24 of the City of San Bernardino
25 Approved ae to form and legal content:
26 By.
Agency Counsel
27 33MOMI-OMM2002
26
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JAN 10 '95 01:07PM P.8
1 RESOLUTION NO.
2 RESOLUTION OF TIM COMMUNITY DEVELOPMENT
8 COMMISSION MAKING CERTAIN DETERMINATIONS IN
ACCORDANCE WITH HEALTH AND SAFETY CODE
4 SECTION 33679
5 WHEREAS, the Redevelopment Agency of the City of San
6 Bernardino (the "Agency") , is a redevelopment agency, a public
7 body, corporate and politic of the State of California, organized
8 and existing pursuant to the Community Redevelopment Law (Part 1
9 of Division 24 commencing with Section 33000) of the Health and
10 Safety Code of the State of California (the "Act") ; and
11
12 WHEREAS, pursuant to Section 33679 of the Act, the
13 Agency may, with the consent of the Mayor and Common Council of
14 the City (the "Council") , pay all or a part of the value of land
15 and construction of any publicly owned building if the Council
16 determines: (1) that such buildings, facilities, structures or
17 other improvements are of benefit to the redevelopment project
18 area or the immediate neighborhood in which the project is
19 located, regardless of whether such improvement is within another
20 project area, or in the case of a project area in which
21 substantially all the land is publicly owned that the improvement
22 is of benefit to an adjacent project area of the Agency, (3) that
23 no other reasonable means of financing such buildings,
24 facilities, structures or other improvements is available to the
25 community, and (3) that the payment of funds for the cost of the
26 facilities, structures or other improvements will assist in the
27 elimination of one or more blighting conditions inside the
28 project; and
-1-
JAN 10 95 01:08PM P.9
1 WHEREAS, the City and the Agency have previously
2 approved and adopted the Redevelopment Plan for the Northwest
$ Project Area ' (the "Redevelopment Plan") ,* and
4
5 WHEPMS, the Agency has been requested to assist
6 Arrowhead Healthcare Systems, Inc. ("Arrowhead") in the financing
7 of the development of certain property (the "Property") within
8 they Agency's Northwest Project Area (the "Project Area") , and in
9 order for Arrowhead to obtain Construction financing of the
10 Property, the Agency must guarantee a loan through a purchase
11 agreement/put option (the "Purchase Agreement") in the amount not
12 to exceed $9,800,000; and
13
14 WHEREAS, the redevelopment purposes of the provision of
15 said Purchase Agreement are to promote development, eliminate
16 blighting conditions and create jobs and services for the
17 residents of the Project Area and the citizens of the City; and
is
19 WHEREAS, Arrowhead proposes to construct a physicians,
20 office building which is projected to attract qualified
21 physicians and support staff from within the City and across the
22 United States in order to increase the quality of health care
23 provided to residents of the City; and
24
25 WHEREAS, it is projected that said increase in
26 physicians will benefit the San Bernardino Community Hospital in
27 order to allow it to maintain its existence within the Project
28 Area; and
..Z-
G
JAN 10 '95 01:08PM P.10
1 WHEREAS, the increase in physicians and support staff
2 from outside of the area will increase the tax base of the
3 Project Area and the surrounding project areas; and
4
5 WHEREAS, Arrowhead has attempted to obtain financing
6 for this project for several years, but has been unsuccessful
7 until now and said financing will not be feasible without the
8 Agency Purchase Agreement; and
9
10 WHEREAS, there are currently a number of blighting
11 conditions existing within the Project Area, namely buildings
12 which are unsafe or unhealthy for persons to work or live, nearby
13 uses which are incompatible, high crime, vacant buildings and
14 lack of necessary commercial facilities and the increase of
15 health care professionals, and the development of the vacant
16 Property will promote the health, safety and welfare of the
17 residents of the City and increase the tax base; and
18
19 WHEREAS, it is appropriate at this time for the Agency
20 to make certain findings and determinations and take certain
21 action with respect to the foregoing.
22
23 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION
24 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
25 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
26 FOLLOWS:
27
28
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t
aI
SAN 10 '95 01:09PM P.11
1eatfon ._1. The Recitals hereinabove are true and
2 correct and are incorporated herein by this reference.
9
4 Section Z. The Agency authorizes the use of tax
5 increment revenues to fund the purchase of the Project under the
6 Purchase Agreement and finds that said Purchase Agreement is of
7 benefit to the Project Area and other neighborhoods within the
8 City for the reasons act forth in the Recitals hereinabove. The
9 Agency also finds and determines that no other reasonable means
10 of financing the Project is presently available. The Agency
11 further finds that the Project will provide economic growth,
12 employment opportunities and necessary healthcare services which
18 will in turn enhance economic investment in the Project Area and
14 surrounding areas and thereby eliminate existing blighting
15 conditions.
16
17 Section 3. The Agency Secretary is hereby
18 authorized and directed to cause this Resolution to be
19 transmitted to the City for consideration in connection with
20 appropriate action by that body.
21 �.
22
23
24
25
26
27
28
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I
TAN 1095 01:09PM P.12
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION MAKING CERTAIN
2 DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION
33679
3 Section A. This Resolution shall take effect from
4 and after the date of its passage and adoption.
5
s I HEREBY CERTIFY that the foregoing Resolution was duly
7 adopted by the Community Development Commission of the City of
8 San Bernardino at a meeting
9 thereof, hold on the day of ,
30 1995, by the following vote, to wit:
11 Commission Members: NAYS ABSTAIN ABSENT
12 NEWME
CURLIN
1$
IiMWANDEZ �
OBERHELMAN
14 DEvLxN
POPE-LUDLAM
15 MILLER
16
17 Secretary
18 The foregoing resolution is hereby approved this
19 day of , 1995.
20
Tom Minor, Chairman
21 Co=aunity Development Commission
22 of the City of San Bernardino
23 Approved as to form and legal content:
24 By:
25 Agency Counsel
26 esso�000i �noou000
27
28
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ECONOMIC DEVELOPMENT AGENCY
ti
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.
Admini 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/_9/1995'---
Agenda Item Number: �
j
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: