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HomeMy WebLinkAboutR16-Redevelopment Agency o o o o o DBVBLOPIIDr DBPAItJ:1oIur OF TIIB CIn OF SO JUnIIInnnro UOUBST FOR CCMlISSIOlI/CODIICIL ACTIOII From: ICENlIETH J. HENDERSON Executive Director Subject: AllDICAlI IlATIOlUL CAlI COIIPAlIY Date: April 10, 1991 ------------------------------------------------------------------------------- Synopsis of Previous Cu.aission/Coancil/Cu.aittee Action: On January 24, 1991, the Redevelopment Committee considered this matter and requested staff to proceed as recommended. ------------------------------------------------------------------------------- Ree~Pnded Motion: (C~itv Develo_ent C-fssion) THAT TIIB COl.__~fi DBVBLOPIIDr CCMlISSIOII APPROVE TIIB mw. POIlITS AS SET FORTH III TIIB ATTACHED STAFF REPORT AlID AUTIIOUZI AlID DIRECT AGENCY COUIISBL TO PREPARE All .lCRR--.r 1lll:r.J5JIIl TIIB CCMlISSIOII AlID AllDICAlI IlATIOlUL CAlI COIIPAlIY. '-liIUUiJ:~' Bll:ecutive Director Deve10paent Departllent ------------------------------------------------------------------------------- Contact Person: Ken Henderson Phone: 5065: 5081 Project Area: Northwest (mi) Ward(s): Six (6) Supporting Data Attached: Staff ReDort FUNDING REQUIREMENTS: Amount: $ N/ A Source: Budget Authority: Commission/Council 1I0tes: KJH:1ab:0153N Ib Agenda Item 110: Q o o j o o DBVILOPIIBIIT DBPA.unr.n.a: S'l'AFF UPOJlT -------------------------------------------------------------- AaeriClUl IIatioual ClUl l'.-nllDV Since October of 1990, staff has been in contact with representatives from AmericlUl National ClUl Company (ARCC) regarding the acquisition of land in the Northwest Redevelopment Project Area Industrial Park and the development of lUl ARCC clUl-making facility. The site is currently in escrow, which is scheduled to close on April 24, 1991. American National Can Company has previously commissioned soils and related tests from local firms. Following is a summary of the proposed project: 1. The proposed plant would be approximately 220,000 square feet in size. The zoning is IH. 2. Recent changes in the Development Code will allow the construction of a metal building without the filing of a Conditional Use Permit (CUP) application. 3. The plant would be a twenty-four (24) hour/three hundred, sixty-two (362) day a year operation. 4. The completed development value is estimated at $55,000,000, which will generate approximately $550,000 a year in tax increment, of which $363,000 (sixty-six percent (66X)) would come to the Department. 5. The plant would have its own internal wastewater treatment plant and would use approximately 75,000 gallons of water per day. The plant would also be a significant consumer of electricity. 6. Approximately one-hundred, twenty (120) jobs will be generated, with additional jobs to be generated as a result of future expansion. Based upon meetings and teleconferences, staff has structured a relatively simple and straight forward proposal to ARCC for its consideration. The most significant, outstanding issue which surfaced early in our discussions was the one-time sewer capacity charge of $8.05/gallon. Multiplied by 75,000 gallons, this figure comes out to be $603,750. American Nationsl Can Company personnel was not aware of this fee prior to our initial meeting when Water Department personnel was present. American National Can Company has also asked for job training assistance in the amount of approximately $500,000, for a total requested assistlUlce package of 1.1 million dollars. Staff countered ARCC's request with the following proposal: KJH:lab:0153N COIIMISSIOIl MEBTIlIG Meeting Date: 04/15/1991 o o o o o DBVELOPIIBlI'r DBPAauma.. STAFF IEPORr AaericlID .aticma1 Can CcapaD;y April 10, 1991 Page -2- ------------------------------------------------------------------------------- 1. Development Department to grant one-hundred (100) sewer capacity rights valued at $226,000 to ARCC as partial payment of the $603,750. 2. Development Department to finance with Municipal Water Department difference of $377,000 over five (5) years. These payments would be made as the property tax increment is generated by the project. 3. Development Department to facilitate, to the extent possible, the acquisition by ARCC of Job Training and Partnership Act (JTPA) assistance from the San Bernardino Employment and Training Agency. Staff has received word from ARCC of its positive response to our offer (see attached letter dated April 1, 1991). They would, however, prefer some assurance that JTPA or some other type of asststance can be committed to this project. Staff has conferred with SBETA staff and they are willing to consider some type of on-the-job training and customized training program for ARCC. They estimate the maximum amount of assistance SBETA/Private Industry Council (PIC) could provide would be $300,000. It is important to note, however, that the PIC cannot commit JTPA funds it has yet to receive. American National Can Company is aware of this technicality and would only want 80me type of assurance that the City will facilitate to the maximum extent possible the provision of JTPA a8sistance. If the deal points as described above are approved by the Commission, the City stands to gain in a number of important ways, as follows: 1. Increasing of our tax base. 2. Generation of one-hundred, twenty (120) new jobs. 3. Generation of additional tax increment for the Northwest Redevelopment Project Area (sorely needed in light of assistance package for West Side Plaza). 4. Significant water usage which greatly assists cashflow of Municipal Water Department. KJH: lab: 0153N COIIIISSIO. IIBBTIRG Meeting Date: 04/15/1991 o o o o DEYBLOPIIEJIr DBPlutl:JIur StilT IBPORT Aaericaa Baticmal Can COIlpaDy April 10, 1991 Page -3- o ------------------------------------------------------------------------------- 5. Significant payer of utility tax, thereby assisting City General Fund. 6. Increases momentum for additional development in Northwest and State College Industrial Parks. I recommend adoption of the form motion. ~OB' Executive Director Development Departaent KJH:lab:0153N CCMlISSIOB IIBBTIBG Meeting Date: 04/15/1991 ~ o o o o American .,.. Nationa' Can ill APR,~~~rn DEVELOPIBI' DEPARTMENT April I, 1991 Mr. Kenneth Henderson Executive Director Development Department City of San Bernardino 300 N. D Street San Bernardino, CA 92418 Dear Ken: Followinq up on our conversation of today, I am pleased to report that American National Can has decided to purchase the site identified at 5715 Industrial Parkway, in the San Bernardino Northwest Industrial Park, and to build a new state of the art beveraqe can plant. This decision is conditioned on receivinq confirmation from you that the financial assistance packaqe of $603,750 described in your letter of January 8, has been approved at all levels, which I understand should be forthcominq very soon. It is also conditioned on receivinq city qradinq permits within the next few days, which are needed in order to perform the necessary environmental cleanup of the site, allowinq time to take and evaluate new soil tests before our options on the land expire on April 30. We appreciate any assistance you can provide in expeditinq this process. Assuminq these two issues are resolved in short order, we will plan to exercise our options on the land and proceed with construction of the plant. We look forward to brinqinq this new operation on-line and enterinq into a lonq term, mutually beneficial relationship with the community of San Bernardino. I appreciate all the interest and assistance provided by you, Bob Temple, your staff and the Community Development Commission. As we move further into the development and construction process, we will plan to work closely with the Employment and Traininq Aqency towards qualifyinq for and receivinq the traininq financial assistance which we understand will be available to us, and will plan to take advantaqe of the help you offered in facilitatinq our obtaininq this assistance. Fred Lanqmaier and our enqineerinq qroup also look forward to any help you can provide in facilitatinq the development plan and construction permit process once we qet started. Americen National Can Company 8770 West Bryn Mawr Avenue Chicago, Illinois 60631-3542 (312) 399.3000 . . o o o o o Mr. Kenneth Henderson Page 2 April 1, 1991 I look forward to hearing from you soon to confirm the financial assistance package and the issuance of the grading permits. Very truly yours, ,~ ;e~. .. Te~~ l~smussen Assistant Treasurer TAR/ks