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HomeMy WebLinkAboutR02-Economic Development Agency . . . . . , IlEDEVELOPMEIlT COMMITTEE MINUTES IlEGlJLAR MEETING February 06, 1992 4:00 p.m. The Regular Meeting of the Redevelopment Committee was called to order by Committee Member Michael Maudsley at 4:05 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL CALL Roll Call was taken with the following members being present: Committee Members Jack Reilly and Michael Maudsley. Chairwoman Esther Estrada arrived at 4:20 p.m. Also present was Mayor W. R. Holcomb. STAFF PRESElIIT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Phil Arvizo, Executive Assistant to the Council; Ann Harris, Executive Director, Main Street; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave, Director, Public Works Department; La Vonda Pearson, Acting Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Neal, Portugal and Neal; Dwight Portugal, Portugal and Neal. 1. PORTUGAL AND REAL 1lE0UEST FOR FIRST APusnJJl'IISlU TO OWNER PARTICIPATION AGREEMENT Kenneth J. Henderson, Executive Director, Development Department, stated this project was one of three (3) included in the letter of credit with Wells Fargo Bank. He said Portugal and Neal were loaned 3.2 million dollars for a project located at the intersection of Waterman South Offramp and Redlands Boulevard. He indicated at the time original development was approved, it was anticipated the majority of occupants would be light industrial and research and development tenants. At present, they are receiving inquiries from potential office users. IlEGlJLAR MEETING 2065B - 1 - REDEVELOPMENT COMMITTEE FEBRUARY 06, 1992 :L . . . . . Mr. Henderson stated Portugal and Neal could not make the necessary tenant improvements for potential office users and therefore, staff is recommending a debt service moratorium for 12 months. He emphasized Portugal and Neal have always been current in making their loan payments of $32,000 a month and that the debt service moratorium would allow them to repay the Agency in 7 years. RECOMMB1UlATION The Committee recommended approval of this item to the Community Development Commission. 2. REOUEST FOil ASSISTANCE - FARAH INVESTMBBT IRTBJnIIATIOlUL. INC. Kenneth J. Henderson, Executive Director, Development Department stated Farah Investment was developing a AM/PM Mini-Market on Highland Avenue. During the development, some additional requirements were made by Caltrans and City plan check fees were increased from $26,000 to $38,000. Farah Investment is requesting a loan for $65,000, with security being a second Deed of Trust and also a personal guarantee. Mr. Henderson indicated this project would provide goods and services to the area and would also generate approximately $40,000 in sales tax. RECOMMB1UlATION The Committee recommended approval of this item to the Community Development Commission. 3. CBIlTIFIED FAIlMKIl'S lIIIurrr Kenneth J. Henderson, Executive Director, Development Department indicated Main Street was requesting permission to use a portion of the Parking Lot located at the southeast corner of Court and "E" Street to establish a Certified Farmer's Market. Phil Arvizo, Executive Assistant to the Council, questioned the need to obtain a permit for this type of use. Ann Harris, Executive Director, Main Street, stated they were in the process of obtaining a temporary use permit from the Planning Department and the participants of the Certified Farmer's Market would obtain their own permits. She indicated the agreement had a 30 day cancellation clause that must be agreed to by both parties. REGllLAIl MEETING 2065B - 2 - REDEVELOPMENT COMMITTEB FEBIlUAIl!' 06, 1992 J- - I- - . . Ms Harris said Main Street was encouraging downtown businesses to stay open on Saturdays during the Certified Farmer's Market and that Main Street would provide dumpsters and portable potties for the event. Mayor Holcomb asked how many vendors would be participating in the Certified Farmer's Market. Ms. Harris indicated there would be approximately 25 - 30 vendors. She said they are currently distributing fliers for the event. She stated this would be a Certified Farmer's Market and would consist only of homegrown produce. She is hoping downtown will become involved to provide other items. Ms. Harris stated Main Street and the Certified Farmer's Market would carry their own liability insurance. RBCOMMEBDATIOlll The Committee recommended approval of this item to the Community Development Commission. 4. COSTS FOR PROCESSIRG RBlIIOVATIOlll OF PACIFIC FEDBVAT. BUILDIRG - lIIEW POLICE STATIOlll Kenneth J. Henderson, Executive Director, Development Department, stated this was a receive and file item to keep the Committee informed of the costs for renovating the new Police Station. Roger Hardgrave, Director, Public Works Department, stated this item would be budgeted in the July budget. He stated this was just a preliminary report indicating the dollar amount spent to this point. Chairwoman Estrada questioned the cost to remove asbestos from the Pacific Federal Building. Mr. Hardgrave stated it would depend on where the asbestos was located and that it could be costly. Mayor Holcomb stated the asbestos could be handled in-house and would save money. He indicated equipment could be utilized for approximately $8,000 and in-house people could be re-certified to complete the job. Discussions ensued regarding the asbestos removal, the qualifications needed, and also the legalities involved. RBGULn IlEBTIRG 2065B - 3 - RBDBVELOPIIElIIT COIlMIn'BE FEBRUARY 06, 1992 J- . . . . . RECOIlMDDATION The Committee recommended this item be accepted as a receive and file item. 5. AUTHORITY TO IMPLEMEBT DEMOLITION PROJECTS Kenneth J. Henderson, Executive Director, Development Department stated this item was referred to the Redevelopment Committee for further study. He gave background on past Commission actions regarding the demolition of projects and indicated staff recommends demolition connected with single family rehabilitation be handled administratively in the same manner as the loan approvals. Mr. Henderson informed the Committee that the Agency follows the National Environmental Policy Act and also a Memorandum of Understanding with the state office of Historic Preservation. He discussed the procedures that must be implemented before a demolition can be completed and answered relative questions. Mr. Henderson stated in order for someone to qualify for assistance for demolition projects, they must be low-moderate income and owner-occupied. Committee Member Mauds1ey expressed concern over the authority to demolish buildings without Council approval. Dennis Barlow, Senior Assistant City Attorney, stated legally there should be a cap on the demolition authority. Chairwoman Estrada recommended appropriating $100,000 with a spending cap of $25,000 in order to monitor spending. Committee Member Reilly questioned the length of time needed to complete demolition of buildings. Mr. Henderson stated complete demolition takes approximately 6 weeks. RECOIlMDDATION The Committee recommended approval of this item to the Community Development Commission with a $25,000 spending cap. 6. LINE OF CREDIT WITH WRT.T.S FARGO IlAl'IIC Kenneth J. Henderson, Executive Director, Development, stated the Wells Fargo Line of Credit approved by the Commission was for $10,000,000 secured and $1,000,000 unsecured for one year. He said the majority of the secured $10,000,000 was from the Southeast Industrial Park. REGULAR MBBTIBG 2065B -4- REDBVELOPMEBT COMMIr.rEB FEBRUARY 06, 1992 ;1 . . . . . Mr. Henderson stated the initial year has passed and staff requests an extension of the line of credit for twelve (12) months. He indicated there were no anticipated changes in the terms and conditions of the letter of credit. Committee Member Maudsley asked if the extension would effect the Portugal and Neal project. Mr. Henderson stated the Portugal and Neal project was included in the extension. RECO~ArION The Committee recommended approval of this item to the Community Development Commission. 7. ADJOlJllll TO CLOSED SESSION The Committee adjourned to Closed Session at 4:53 p.m. to discuss the following: (d) Pursuant to Resolution Number 5272, the Redevelopment Committee of the Development Department of the City of San Bernardino will convene in Closed Session to discuss matters of sensitive negotiations with development clients. orHER MArrERS Chairwoman Estrada requested staff be prepared to make presentation to Commission on the Dairy project on Waterman Avenue and also the Orange Grove project. 8. ADJOtlRNMDr There being no further business, the meeting of February 6, 1992, was adjourned at 5:25 p.m. to February 20, 1992. Approved by: Esther Estrada, ChairwolUlD. Redevelopment Committee EE :KJH: lmp REGULAR MDrIlW 2065B - 5 - REDEVELOPMERr COMMIrrEE FEBRUARY 06, 1992 J-.