HomeMy WebLinkAboutR39-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Gary Van Osdel
Executive Director
SUBJECT:
AMENDMENT NO. 1-
REDEVELOPMENTPLANNlNG
AND PARTICIPATION
AGREEMENT-SANTA FE DEPOT
REDEVELOPMENT
IMPLEMENTATION AREA
(PEARLMAN)
DATE:
July 3. 2002
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SvnoDsis of Previous Commission/CounciVCommittee Action(s):
On April 5, 2001, the Redevelopment Committee authorized staff to give property owners in the study area notice of
owner participation opportunity to submit statements of interest to the Ageucy. Staff was also directed to prepare a draft
agreement for an exclusive right to negotiate.
On August 6, 2001, the Community Development Commission authorized the Chair of the Community Development
Commission to execute a Redevelopment Planning & Participation Agreement for the Santa Fe Depot Redevelopment
Implementation Area (Pearlman).
Recommended Motion(s):
(Community DeveloDment Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AMENDMENT
NO. I TO THE REDEVELOPMENT PLANNING AND PARTICIPATION AGREEMENT FOR THE
SANTA FE DEPOT REDEVELOPMENT IMPLEMENTATION AREA (PEARLMAN)
Contact Person(s):
Project Area(s)
Gary Van OsdeVMike Trout
Uptown, Mt. Vernon Corridor
Phone:
663-1044
Ward(s):
One (I)
Supporting Data Attached: liSJ Staff Report liSJ Resolution(s) liSJAgreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo
FUNDING REQUIREMENTS Amount: $
o
Source:
SIGNATURE:
Budget Authority:
r7
N/A
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Mike Trout, Project Manager
Commission/Council Notes:
12t:~ ~ CCC/7CXl 2--2(,
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COMMISSION MEETING AGENDA
Meeting Date: 07/15/2002
Agenda Item Number: ~
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Amendment No.1 - Redevelonment Planmn!! and Partidnation A!!reement -
Santa Fe Denot Redevelonment Imnlementation Area (Pearlman)
BACKGROUND:
On AprilS, 2001, the Redevelopment Committee considered a request for an exclusive right to negotiate
for development in the area from the Arthur Pearlman Corporation, who is an experienced retail
development firm with financial resources needed for large-scale developments.
While no site plans have been created, the area surrounding the Santa Fe Depot is zoned for primarily
commercial and industrial and development consistent with both the Depot and the Intermodal Facility
would be considered. The locale under study is shown in Exhibit "A" and encompasses approximately
105 acres.
On May 23, 2001, Agency staff issued a "Notice to Property Owners Requesting Submission of
Statements of Interest in Participating in Redevelopment" to all property owners in the study area. Staff
followed both Uptown and Mt. Vernon Corridor owner participation rules and notified the owners by first
class mail regarding their right to submit competing redevelopment proposals. Pursuant to those rules,
owners were given a 30-day period to submit a written statement of intent to submit a proposal.
Of the 250 property owners notified, 35 returned Statements of Interest. Responses are broken down as
follows:
SOl's Sent
Returned due to bad address
Yes, sell
Yes, non-committal
Yes, expand business
Yes, continue as is
Opposed
No Response
228 100.0%
49 21.5%
20 8.8%
10 4.4%
I 0.4%
3 1.0%
I 0.4%
144 63.6%
Of the thirty-five (35) responses returned, almost 60% would like to sell their property. 30% of the
respondents were interested but non-committal. The following businesses are interested in staying at their
current location:
I. FMS Performance, an existing automotive business, is interested in expanding onto a nearby lot.
2. Blue Soft Laundry, Discount Market, Mona's Bar, and General Brakes and Supply would like to
continue their businesses at their present locations.
3. One residential owner was opposed to any proposed redevelopment of his property.
While a few businesses are interested in maintaining their own properties and one business wants to
expand, it appears that none of the owners was willing to take the lead on an area wide master plan
COMMISSION MEETING AGENDA
Meeting Date: 07/15/2002
Agenda Item Number: .t:3.i
Economic Development Agency Staff Report
ERN - Pearlman
July 3, 2002
Page Number -2-
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project. However, judging by the number of prospective sellers and non-committaI property owners, it
appears that there may be some interest in getting involved in the preliminary exploration and analysis for
a redevelopment project. Nevertheless, the only party expressing interest in developing an area wide
master plan bas been the Arthur Pearlman Corporation.
On August 6,2001, the Community Development Commission approved a Redevelopment Planning and
Participation Agreement with the Arthur Pearlman Corporation. It provides for a I-year period within
which to negotiate a Disposition and Development Agreement (DDA). During that period of time, the
Participant and Agency would explore the possibilities for redevelopment and research all aspects of a
potential plan for the area. The Participant would conduct necessary financial, environmental, planning,
traffic, relocation and related studies. Existence of the Agreement would also allow the Participant to
secure preliminary commitments from major tenants interested in locating in San Bernardino.
Apart from defining obligations of both Agency and Arthur Pearlman Corporation regarding conduct of
needed studies, the Agreement provided that the Participant pay the costs to prepare the plans and studies
typically required under an exclusive negotiating arrangement. Because the fum had a proven ability to
create an approvable project, staff did not believe that a good faith deposit is necessary.
Since the execution of the Redevelopment Planning and Participation Agreement, the Participant bas been
diligent in working towards completing the "Pre-Development" work necessary prior to the negotiation of
a Disposition and Development Agreement. The Participant originally started their research by focusing
on developing the entire lOS-acre Exclusive Redevelopment Area as one project. The result of this top-
down approach led them to recommend a smaller and more manageable place to begin and to accomplish
the development through various phases.
Their focus is now towards the redevelopment of the EI Tigre Market as part of a complete 10-acre
neighborhood shopping center generally bordered by 3'" Street on the north, "K" Street to the east, 2nd
Street to the south and Mt. Vernon Avenue on the west. To date, the Participant has met with the owners
of the El Tigre Market on several occasions, concerning their desire to relocate within the new shopping
center and the size of the store that they would like. The Participant has also worked up design concepts
for the new shopping area.
CURRENT ISSUE:
Since final approval of the Amendment to the Uptown Redevelopment Project Area Plan, re-instating
eminent domain, is scheduled to take place in January 2003 and that there are still some issues concerning
the properties required for the shopping center the Participant has requested an extension to the original
termination date of the Agreement. The Agency requests that the termination date be extended an
additional 180 days, changing the termination date to February 6, 2003. This extension will allow
sufficient time to complete all issues and negotiate the DDA.
ENVIRONMENTAL IMPACT:
None.
COMMISSION MEETING AGENDA
Meeting Date: 07/1512002
Agenda Item Number: 1€3 9
FISCAL IMPACT:
There is no immediate fiscal impact on the Agency apart from staff time commitment. If approved, this
agreement provides no budget authorization. Once a more specific plan is created, Agency staff will
present a budget request to the Commission
RECOMMENDATION:
unity Development Commission adopt the Form Motion.
COMMISSION MEETING AGENDA
Meeting Date: 07115/2002
Agenda Item Number: R3CJ
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RESOLUTION NO.
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3
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE AMENDMENT NO. 1 TO THE
REDEVELOPMENT PLANNING AND PARTICIPATION AGREEMENT
FOR THE SANTA FE DEPOT REDEVELOPMENT IMPLEMENTATION
AREA (ARTHUR PEARLMAN CORPORATION)
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WHEREAS, the Community Development Commission of the City of San Bernardino
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(the "Commission") is the governing body of the Redevelopment Agency of the City of San
Bernardino (the "Agency"), a public body corporate and politic, organized and existing pursuant
to the Community Redevelopment Law (California Health and Safety Code Section 33000, et.
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WHEREAS, the Agency and Arthur Pearlman Corporation, a California corporation,
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the ("Participant") entered into that certain 200 I Redevelopment Planning and Participation
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Agreement dated August 6, 2001 (the "Agreement") for the purpose of exploring the
possibilities for the redevelopment of the Santa Fe Depot Redevelopment Implementation Area
(the "Area") within the Uptown and Mt. Vernon Redevelopment Project Areas; and
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WHEREAS, The Participant has been progressing diligently, but due to the complexity
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of the project will not be able to negotiate a Disposition and Development Agreement (DDA)
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within the allotted tine; and
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WHEREAS, The Agency is willing to extend the termination date of the Agreement to
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allow the Participant further time in order to negotiate a DDA; and
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WHEREAS, Amendment No.1 to the Agreement ("Amendment No, I") has been
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presented to this Commission for approval.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
2 THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND
3 ORDER AS FOLLOWS:
4 Section 1. The Commission hereby approves Amendment No. I attached hereto as
5 Exhibit "A".
6 Section 2. The Executive Director of the Agency is hereby authorized to execute
7 Amendment No. I on behalf of the Agency in substantially the form attached hereto, together
8 with such changes therein as may be approved by the Executive Director and Agency Special
9 Counsel. The Executive Director or such other designated representative of the Agency is
10 further authorized to do any and all things and take any and all actions a may be deemed
11 necessary or advisable to effectuate the purposes of Amendment No. I.
Section 3. The Resolution shall become effective immediately upon its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE AMENDMENT NO.1 TO THE
REDEVELOPMENT PLANNING AND PARTICIPATION AGREEMENT
FOR THE SANTA FE DEPOT REDEVELOPMENT IMPLEMENTATION
AREA (ARTHUR PEARLMAN CORPORATION)
Section 4. This Resolution shall become effective immediately upon its adoption.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community
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Development Commission of the City of San Bernardino at a
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meeting
, 2002 by the following vote,
NAYS
ABSTAIN
ABSENT
Secretary
The foregoing resolution is hereby approved this
,2002.
day of
Judith Valles, Chairperson
Community Development
Commission
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e 28
AMENDMENT NO.1
TO THE
2001 REDEVELOPMENT PLANNING
AND PARTICIPATION AGREEMENT
(Santa Fe Depot Redevelopment Implementation Area)
Amendment No.
to the 2001 REDEVELOPMENT PLANNING AND
PARTICIPATION AGREEMENT ("Agreement) is entered into as of July 15,2002 by and
between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a
body corporate and politic ("Agency") and Arthur Pearlman Corporation, a California
corporation, jointly and severally (collectively referred to herein as the "Participant" with
respect to the following facts:
RECITALS
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WHEREAS, the Agency and the Participant entered into that certain 2001
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Redevelopment Planning and Participation Agreement, dated August 6, 2001 (the
17 "Agreement"), concernmg the Santa Fe Depot Redevelopment Implementation Area (the
18 "Area"); and
WHEREAS, the Agreement states that it shall be terminated and be of no further force
or effect August 6, 2002, unless prior to that time the parties agree to extend tl1e term of this
Agreement in the sole discretion of each of them; and
WHEREAS, the Participant desires that the termination date be extended in order to
negotiate a Disposition and Development Agreement (DDA) for the Area; and
WHEREAS, the Agency is willing to extend the termination date of the Agreement to
allow the Participant further time in order to negotiate a DDA.
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_UI
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1.
The Recitals set forth above are hereby incorporated into this
Amendment No.1 by this reference, as though fully set forth herein.
Section 2. Except as hereby amended, the Agreement is in all respects ratified and
confirmed and all the terms and provisions and conditions thereof shall be and remain in full
force and effect.
Section L(a) and (b) of the Agreement is hereby amended to read in its
Section 3.
12 entirety, as follows:
(a) The rights and duties of the parties established by this Agreement shall commence
on the date of acceptance of this Agreement by the governing board of the Agency as
evidenced by the signatures of its authorized officers as appears on page 13, below, and
thereafter this Agreement shall terminate and be of no further force or effect February
6, 2003 unless prior to that time:
(i) the Participant delivers notice to Agency as set forth in Section lO(a)
suspending the obligation of the Participant to pay the Agency further
installments of Project Study Costs and terminating this Agreement; or
(ii) the Agency delivers notice to the Participant suspending the Project
Study and terminating the Agreement as set forth in Section 1 O(b); or
(iii) the parties agree to extend the term of this Agreement in the sole
discretion of each of them.
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(b) The rights and duties of the parties established by this Agreement shaH be subject to
mutual release and discharge prior to February 6, 2003 by the governing board of the
Agency. at such time as the parties execute a separate participation agreement (herein
the "Project OPAlDDA") for a specific plan of reuse and redevelopment
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IN WITNESS WHEREOF, the undersigned have executed this Agreement on the dates
indicated next to each of their signatures as appear below
PARTICIPANT
Arthur Pearlman Corporation,
A California corporation
By:
For Arthur Pearlman Corporation
AGENCY
Redevelopment Agency of the City
of San Bernardino
By:
Executive Director
Gary Van Osdel
4
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Abstain
Resolution # Clt I 2Cb2 - 2(.
,
-9-r Absent f!:::y
Meeting Date (Date Adopted): ,-is --c).;L Item #
Vote: Ayes \-'/ Nays .k)-
Change to motion to amend original documents: -
~39
Reso. # On Attachments: - Contract term: -
Note on Resolution of Attachment stored separately: -==--
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY By:
NullNoid After: -
Date Sent to Mayor: I ~ Ie, -cJ;).-
Date of Mayor's Signature: fI-n -o?
Date of Clerk/CDC Signature: 'l-c'\ --c.) ::>-
Reso. Log Updated: .-/
Seal Impressed: v/
See Attached: =- Date Returned: ~-b'-{) ;;r
See Attached:
See Attached:
Date Memo/Letter Sent for Signature: fOp,
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
YesL No By
Yes No~ By
Yes No i/ By
Yes N01r By
Yes No By_
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services
Police Public Services Water
EDA/
Finance
MIS
Others:
Notes:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: 1\1f
Date: ~." -o,,;L
Revised 0111210 I