HomeMy WebLinkAboutR17-Redevelopment Agency
R~VELOPIENT AOENCY..QuST FOR A-ISSION/COUNCL ABa.
From:
Qt:
Glenda Saul, Executive Director
Redevelopment Agency
Subject:
APPROVE IN CONCEPT OPA IN STATE
COLLEGE INDUSTRIAL PARK AND
AUTHORIZE STAFF TO ASSIST
DEVELOPER WITH UDAG APPLICATION
Date: July 12, 1985
Synopsis of Previous Commission/Council action:
None
Recommended motion:
(COMMUNITY DEVELOPMENT COMKlSSION)
Q
a) Instruct staff and legal counsel to prepare an Owner Participation Agreement as
described within Staff Report to be brought back to the Commission on August-8";
1985 for approval. 5
(MAYOR AND COMMON COUNCIL)
b) Instruct staff to prepare and apply for a UDAG on behalf of industrial firm to
locate in State College Industrial ~ark.
c) Approve a public hearing date to be held by staff on July 26, 1985, and approve a
public hearing to be held by the City Council on July 29, 1985, at 9:00 a.m.
--r-/ ee::~ ~- c;;---
Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
$400,000
Phone: 383-5081
Ward: 6
Project: SC
Date: July 15, 1985
Supporting data attached:
YES
No adverse Impact on City:
OCil Notes:
1225J/SL
Agenda Item No. 7;!R,/?
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CIPt OF SAN _RNARDQO - REQUQT FOR COUNCIL ACtlON
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STAFF REPORT
In May, 1985, the Agency was approached by representatives of a major Japanese
international corporation in regards to the availability of assistance for the
construction of a new manufacturing facility in the State College Industrial Park.
There was, at that time, stiff competition among two other Southern California cities
to attract this firm, Based on the superiority of sites in the State College
Industrial Park and the incentives this Agency is able to provide, this major firm has
decided to locate in San Bernardino.
They plan to build a 130,000 sq. ft. manufacturing plant in the State College
Industrial Park (see attached map) for the manufacturing of plastic containers. The
plant will be valued at *8,000,000 and employ 80-100 persons, many of whom will be
entry level.
Staff recommends that the Agency participate in the development by reimbursing this
firm approximately *400,000 (equivalent to 5 years of tax increment) through several
available incentives.
Initially, the proposed participation would be in the form of a land "write down" in
the amount of *188,000. Approximately two areas of the proposed site is very limited
in use due to a 70 foot drainage easement across the rear of the property. Staff
proposes that the Agency absorb the cost of these two acres (*94,OOO/per acre;
*2.l6/sq. ft.) and through escrow pay to the existing owner of the site (Campeau
o Corporation) approximately *188,000.
In addition, staff recommends that the Japanese firm be included in the Employment
Linkage Program, allowing them the maximum reimbursement per employee (*1,500), up to
hoO,ooo.
The remaining *112,000 may be used to defray the costs of offsite improvements and
construction of a railroad spur.
The firm has indicated that this project will be only their initial investment in the
community, and they have long range plans for expansion. They have requested Agency
assistance in two other areas.
They desire IDB and UDAG assistance. They will need a UDAG to avoid the $10 million
capital expenditure cap placed on IDBs. The UDAG will increase the cap up to $20
million.
On July 2, 1985 the Redevelopment Committee reviewed the proposed Agreement and
recommended approval. Staff is requesting the following:
a) Instruct staff and legal counsel to prepare an Owner Participation Agreement as
described above.
b) Instruct staff to prepare and apply for a UDAG.
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c) Approve a public hearing date to be held by staff on July 26, 1985 (this is a
required, informational-type meeting), and approve a public hearing date to be held by
City Council on July 29, 1985, at 9:00 a.m.
75-0264
l225J/OJ
07-15-85
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