HomeMy WebLinkAbout16-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Gary Van Osdel
Executive Director
SUBJECT: 303 WEST THIRD STREET - HUmOS
LOAN
DATE:
July 14, 2003
ORiGiNAL
Synopsis of Previous Commission/Council/Committee Action(s):
On September 18, 2000, tbe Community Development Commission and the Mayor and Common Council approved
development and loan agreements for the financing, acquisition, renovation and reuse of the 303 West Third Street
office building by 303 LLC.
Recommended Motion(s):
(Mavor and Common Council)
MOTION:
TO AUTHORIZE THE MAYOR TO MODIFY THE 20- YEAR LOAN COMMITMENT SCHEDULE
FOR THE 303 WEST THIRD STREET HUDI08 LOAN BY ADDING ONE ADDITIONAL YEAR
OF INTEREST ONLY PAYMENTS.
Contact Person(s):
John Hoeger
Central City
Phone:
(909) 663-1044
Project Area(s)
Supporting Data Attached:
Ward(s):
One
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
N/A
N/A
Amount
None
Source:
SIGNATURE:
Jo oe, Senior Project anager
P:\AgcndasIComm Dcv Commi~sion\CDC 2003\03-07.21 303 West Third SlrccLdoc
COMMISSION MEETING AGENDA
Meeting Date: 07/21/2003
Agenda Item Number: / fo
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
______________________________ __________________.__________________________ _______________________________u________________________________________________________._.___________________________________.
303 WEST THIRD STREET - HUDI08 LOAN
BACKGROUND:
The removal of toxic contaminants in and around the 303 West Third Street office building is
complete. Negotiations are underway to lease (or possibly sell) the building however those
negotiations have not been completed.
The original agreements for financing the toxic material removal contemplated that a lease would be
signed and that tenant improvements would be under construction by this time. Thus, the HUD 108
loan agreement between the City and HUD contains an initial principal payment of $100,000 due on
August 1, 2003. Due to delays in the lease negotiations, HUD has agreed to extend the time for the
first payment for one additional year.
This agenda item only deals with the City's obligations to HUD. Time constraints require that it be
considered this month. Other issues between the Developer and the City will be considered by the
Redevelopment Committee on July 24 and its recommendation will be forwarded to the Mayor and
Common Council meeting of August 4.
CURRENT ISSUE:
To keep the City's HUDI08 loan current, the City's Commitment Schedule must be modified prior to
August 1. The attached Amended Commitment Schedule eliminates the August 1, 2003 payment and
increases the August 1, 2020 payment accordingly. This effectively delays the principal payment
schedule by 12 months but still pays back the full loan amount within the required 20 year period.
ENVIRONMENT AL IMPACT:
None.
FISCAL IMPACT:
Reduces the August 1, 2003 principal payment to zero and adds $100,000 to the final principal
payment due August 2020.
RECOMMENDATION:
________________________________________________________________________._____________________. ____________________________+____________________________n___._______________________________+__.__.______.
P:\Agcndas\Col1lm Dc;" Commission\CDC 2003\03-07-21 303 West Third Slrcel.doc COMMISSION MEETING AGENDA
Meeting Date: 07/21/2003
Agenda Item Number: J ~
ECONOMIC DEVELOPMENT AGENCY
FROM:
HUSTON CARLYLE, SR. ASSISTANT CITY ATTORNEY
SANDRA MEDINA, ASSISTANT TO THE CITY CLERK
JOHN HOEGER, SENIOR PROJECT MANAGER
~~
TO:
SUBJECT: 303 WEST THIRD HUDl08 LOAN AGENDA ITEM FOR 7/21/03
DATE: 7/17/2003
CC: GVO; FILE
1b.is afternoon I received a corrected Commitment Schedule from the Washington D.C.
office of HUD. 1b.is is for the 303 West 1b.ird Street HUD108 Loan. I believe the change is
to correct the identification number that appears in the upper right hand corner of the sheet
below the title.
Please see that the Mayor is given this corrected copy to sign. After it is signed I will fax
it to Washington so that they will have the faxed copy as soon as they arrive on Tuesday
morning. The hard copy will be sent by express delivery and should also arrive some time on
Tuesday.
AMENDED COMMITMENT SCHEDULE
Note No. B-94-MC-06-0539-A
Principal Due Date
August 1,2001
August I, 2002
August I, 2003
August I, 2004
August 1,2005
August 1,2006
August 1,2007
August 1,2008
August 1, 2009
August 1,2010
August I, 2011
August 1, 2012
August 1, 2013
August 1,2014
August 1,2015
August 1, 2016
August 1, 2017
August 1,2018
August 1,2019
August 1,2020
Commitment Amount
$0
$0
$0
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$240,000
Maximum Commitment Amount
$1,840,000
Pursuant to Section IV.H. of this Note originally dated as of September 26, 2000, the
amended Commitment Schedule above is hereby accepted and agreed to on behalf
of the Borrower, shall supersede the origiual Commitmeut Schedule, and shall be
attached to the Note in lieu ofthe original Commitment Schedule.
By:
(Signature)
(Name)
(Title)
(Date)