HomeMy WebLinkAboutR03-Redevelopment Agency
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Uu.VAlNnIIUU COlwu.n:A6
III.UTIS
ac:m.&R 1IUl.".lJfti
February 7, 1991
4:00 p...
The Relu1ar Meetina of the Redevelopment Committee was called to order
by ChairwOllWl Isther Istrada at 4:12 p.II., in the Iconomic Development Alency
Conference Room, Fourth Floor, City Hall, 300 Borth "D" Street, San Bernardino.
ROLL I!AY.I.
Roll call was taken wi th the followill& lIembers bein& present:
ChairwOllWl Isther latrada, Committee Member Je.s Flores and Committee Member
Mike Maudsley.
trr,.. _.....
Timothy Steinhaus, Administrator, Iconomic Development Aaency; Kenneth
J. Henderson, Bxecutive Director, Development Department; Dennis A. Barlow,
Senior Assistant City Attorney; John Hoeler, Development Manaler, Development
Department; Lorraine Velarde, Bxecutive Assistant to the Mayor; Phil Arvizo,
Bxecutive Assistant to the Council; Deborah Marez, Recordina Secretary,
Development Department.
M'IIRIPR U A'l"l'RllnAIIt!R
Bonnie Goler, Golwix Properties; Francine A. Wixen, GolwIx Properties;
Rick Colvey, Surf City; Frank Schuetz, F. I. Schuetz Brolteraae; Russell Clark,
Surf City; Rhonda Connolly, Miller and Schroeder; John Larson, Holmes and
Craven; Graham Witherall, The Sun.
2. r.Im'rIIlT. CITY SDmII VA'I'I!R DIllIE PA1P'I' - S1mF CITY USA (Taken out of
order.)
John Hoeler, Manaler, Development Division, summarized the staff report
and lave a brief presentation of the newly revised proposal totallina
$13,500,000 for construction of a water theme park on seventeen (17) acres,
located primarily on the Wixen property in Central City South, and also
involvina property located to the south. The report outlined details on
taxable versus tax-exempt financina; phasina of construction; capital
investment requirements, and; financina alt!!rnstives. Mr. Hoeler noted that
the marketina studies were based upon the primary service area beina within a
fifteen (15) miles radius. He pointed out that the Committee should consider
potential liability issues involved in the case of accidental drownina and
stated on-site risk manslement should be included as a requirement of the park.
REDEVELOPMERT COMMITTEE
REGULAR MEETING
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Leaathy discussion ensued reaard1D& competition from other theme parks;
expectations for the lone-term life of the park, and projections of sttracting
customers on a seasonal basis.
John Larson, from Holmes and Grsven, and Rhonda Ccmnolly, from Miller
and Schroeder, presented their feasibility analyses relative.to financing the
project throuah bonds, as well as the possibility of dividing the difference
between taxable and tax-exempt rates. They concluded it would not be possible
to do the financing on a tax-exempt basis for a private party. The project,
therefore, would need to be looked at as a City venture with the City owning
the project, inCluding equity. Furthermore, they atatad it would be difficult
to locate an institutional investor that would finance this type of project,
with $15,000,000 being all inclusive and the financing being taxable to the
developer. Mr. Larson stated alternatives are available that involve
additional equity, whether it is venture capital or land contribution, in
order to provide some financial ..sistance. Other possibilities could be
joint ventures between the City, landowners or developers in various ratios
and accomplished on a taxable basis.
Leaatby discussion ensued reaarding phasing the project to decrease
initial costs ensuring the fifty-percent (SOX) equity requirement is met,
alternatives in which the developer could meet the (SOX) equity requirement,
ability of the developer to absorb the.first year's operating expenses,
potential of hav1D& capital reserves in place, and projected expectations for
daily and seasonsl revenue.
Russ Clark, Surf City USA, said that if the project is approved, the
park could be built in ninety (90) days, working double shifts.
Mr. Henderson indicated Surf City should revise its proposal to include
phasing schedule, proposed taxable/tax-exempt situations, possibility of a
higher equity contribution, sttraction of aajor capital and analyses of the
slternative issues previously mentioned.
U,...-IItRII'&'l'TOR
The Committee recommend this item be continued to the February 21, 1991
Redevelopment Committee meeting at which time Surf City USA will submit
its revised proposal reflecting additional analysis pertaining to
financial projections and phasing.
7. S"Kl<lIlth.IIIC OF R.D.A. co..u.rr_ IlEK'l'IIIGS IR IlUlCR (taken out of order)
Eenneth J. Henderson, Executive Director, announced that, due to the
March 5, 1991 elections, the Council meeting was adjourned to March 11, 1991,
in addition to the reaular meeting scheduled the following Monday (March 18,
1991). Mr. Henderson requested the Committee's direction relative to
schedUling of the Redevelopment Committee meetings for March.
REDEVELOPMEllT COMMITTEE
REGULAR MEETING
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Phil Arvizo stated the nut reaular Coaaittee lIeetina was on February
21, 1991. ChairwOllan Istrada noted the Committee would discuas the March
meetina schedule at the nut lIeetina.
. ......., ,I ~ II ., I ,
No action taken. The Redeveloplllent Committee meetina will meet on
February 21, 1991, as reaularl,. scheduled at which time the March
meetina dates will be discussed and determined.
1. REPORT 011 11&. _AIInTWl BCOIlOllIC mnrRI.n__ COIJB'CIL CSRlme) ASSETS
Kenneth J. Henderson, Ixecutive Director, stated that Sam Henley former
Ixecutive Director of SBEDC, was not able to attend due to a previous
commitment at the Chamber of Commerce.
. Lorraine Velsrde commented that she is preparina a report for Mr.
Henle,., which he is ezpectina prior to discussina this issue.
Chairwoman Istrada saked Phil Arvizo to contact Mr. Henley and secure a
convenient date whereby this isaue could" be addressed.
nC^'---.uA'l'TOR
The Committee recoaaended this item be continued. Phil Arvizo will
contact Mr. Henley and arranae s date for his attendance.
3.
rocn. mnrRI.n__ CORPOR&'l'TOII
Kenneth J. Henderson, Ixecutive Director, requested this item be
continued to February 21, 1991 as the documents pertainina to this items are
not svailable due to computer equiplllent problems.
D~IIA"IO.
The Committee recommended this item be continued to the nut
Redeveloplllent Committee meetina.
4. FIscn. VRAII crn 1991/1992 CDRC PROOUII III][
Kenneth J. Henderson, Ixecutive Director, stated that the Ma,.or and
Common Council considered this item at its February 4, 1991 meetina and
referred the matter to the Committee due to the receipt of additional
information which could possibly impact proaram mix distribution. He stated
that staff was recently notified by BUD that the F! 1991/1992 CDBG allocation
totalled approximately $1,862,000. In addition, he further stated that one
REDEVELOPMENT COMMITTEE
REGULAR MEETING
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percent (lX), (or $16,000) from the current year'a arant vaa held back and,
aubsequently, added to the FY 1991/1992 allocation increaaina the total arant
amount to $1,878,000. Mr. Benderson informed the Committee that the $16,000
could either be added to the PI 1990/1991 arant and final Statement of
Objectivea or to the PI 1991/1992 arant. Be recommended includina the
additional amount in the PI 1991/1992 prolram aa the Statement of Objectives
for FY 1990/1991 vould have to be amended.
Mr. Benderson aummarized the ataff report and hi&hli&hted ailnificant
issues for the Committee's information and conaideration.
Lenathy diacussion ensued pertainina to the allocation of funds to
various cateaoriea reflected in the proaram mix.
Mr. Benderaon atated the Lelislative Review Committee met earlier in
the sfternoon and significant diacusaion vas conducted reaardina the atatus of
the aidewalk infill prolram. Be further atated aimilar diacusaions could take
place relative to the 1andacape development and maintenance prolram, in terms
of what may happen becauae of the fifty-fifty (50-50) coata to be ahared with
property ownera of low income requirina ..aiatance. Staff will provide a
report of probable financial impacta to the Leaia1ative Review Committee. A
meetina will be held with the Director of Public Works/Public Services and
Fred Wi1aon, Asaiatant City Adminiatrator, diacuasina this matter and
potential financial impact on low income residents.
Chairwoman Estrada questioned the amount allocated for administrative
costs. Mr. Benderson reaponded that the $375,600 reflects twenty percent
(20X) of what is actually available, ao althou&h the budaeted cost is
$375,000, the actual outlay of funda for the immediate paat fiacal year was
$292,000, which was baaed upon the Grantee Performance report aubmitted to
BUD. The difference is due to aalariea aaved aa a reau1t of exiatina
poaitiona that have remained vacant in anticipation of the reorlanization. He
added that a aignificant portion of fundina ia related to profeaaional
aervicea, aa oppoaed to internal peraonne1 aervices and that it ia important
to note that only three and one-half (3-1/2) to four (4) full time equivalents
are actually charled to Adminiatration. The remainina peraonnel aervicea
coata are taken from proaram income and income derived from the houaina
rehabilitation proaram. The houaina rahabi1itation aection ia ae1f-aufficient
and there are currently no aa1ariea or benefits charled to the adminiatration
aubpart.
Lengthy diacusaion ensued reaardina the uae of the Appropriated Reserve
Account.
Mr. Benderson stated the action recommended by staff is for the
Redevelopment Committee to recommend to the Mayor and Common Council approval
of the Fiscal Year 1991/1992 CDBG Proaram Mix, for the period belinnina July
1, 1991 and endina June 30, 1992. Further, that staff be authorized to
solicit proposals for same.
REDEVELOPMERT COIIMITTEE
REGULAR MEETING
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FEBRUARY 7, 1991
5301 (d1m)
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UCO--."II"'"OR
The Committee recommended this item be forwsrded to the "-yor and
Common Council for considerstion and spprovsl.
5. CDBG PLOA'r t.n". lUll IBQPPIE I;--IAJ[ .'r .a-KLIB R'n.... AlII) MlDlCAL
1;III:IIITJliK nvTVR
Kenneth J. Benderson, Executive Director, summarized the staff report
for the Committee. Be ststed staff is recommending that the Redevelopment
Committee recommend to the "-yor and Common Council approval of a resolution
reducing the CDBG float loan contribution from $1,250,000 to $450,000,
substituting Rev Frontier Commercial Properties, Inc., for Alexander Baagen
Development Corporation as the developer of record, changing the name of the
development project from West Side Shoppina Center to West Side Plaza, and
repealing Resolution lUmber 88-287.
Dr.A...II:"..,&"IOR
The Redevelopment Committee recommended this item be forwarded to the
Mayor and Common Council at its February 21, 1991 meeting for
consideration and approval.
6.
r.RRr.r SIGlIIIIG Awn SICIIA'I'IIIrR .&1n'IIll1!TTY
Kenneth J. Benderson, Executive Director, atated the adoption of this
resolution will remove Robert J. Temple as Assistant Secretary and authorized
signer of the Development Department's safety depoait box, Department checks
and vouchers, substitutes Timothy C. Steinhaus as authorized signer on same.
All Department checks and vouchers will be signed by Mr. Steinhaus, as the
principal, with Kenneth J. Benderson as the alternate, and will require the
second signature of the Mayor, with Chairperson Isther Istrada as the
alternate.
Oco...K..II&TIOW
The Redevelopment Committee recommended thia item be forwarded to the
Community Development Commission at its February 21, 1991 meeting for
consideration and approval.
8. ~ lIIIIrr.DR ClPA.... 1>IIIlCDA. (ZSGl) APPLlCA"IOlI Awn JlJ:OIIISTS FOR
PmPO!t.al.R
Kenneth J. Benderson, Executive Director, stated BUD staff strongly
recommends and encourases entitlement cities to utilize a competitive bidding
process for awarding of Imeraency Shelter Grant Proaram (ISGP) funds. This
REDEVELOPMEl'lT COMMITTEE
REGULAR MEETING
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FEBRUARY 7, 1991
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recommendation is based upon concerns ~ BUD of cities having control of these
funds and not providing other entities the opportunity to effectively compete
for same. Based upon the above, staff recommends the fOllowing:
(1) That staff be authorized to develop and submit to
the U. S. Department of Bousing and Urban
Development (BUD) an application for the City's
FY 1991/1992 lIIerleney Shelter Grant Pro.ram
allocation in the amount of $43,000.
(2) That staff be authorized to solicit proposals
from qualified, non-profit entities and that the
Community Development Citizen Advisory Committee
(CDCAC) be utilized to review eligible proposals
and malte recommendations to the Mayor and Common
Council, as appropriate.
Mr. Benderson indicated that the Bome1ess Ad Boc Committee could be
utilized as an alternative to the CDCAC for the proposal, review and
recommendation process. Chairwoman Estrada stated her preference to utiliZing
the Bome1ess Ad Boc Committee for this process.
Dtn.-'::RIIA..-rOB
The Redevelopment Committee recommended this item be forwarded to the
Mayor and Common Council, amending the 1I0tion to read "Bomeless Ad Hoc
Committee" in place of the "Community Development Citizen Advisory
Committee".
9.
l!I'.ftmm DSSIOII - ~T&"OIIS VIm mnrRT~nmllTCLlmrrs
Kenneth J. Benderson, Executive Director, reiterated that the Committee
preViously indicated its desire to conduct closed session nelotiations with
prospective development clients relarding deal pOints, and related issues,
without the possibility of premature articles being published in local
newspapers. A resolution drafted ~ Ageney Counsel incorporating the above
provides the Committee the authority to conduct closed sessions, not only for
personnel, 1itilation and acquisitions, but also for sensitive negotiations
with various developers.
Dennis Barlow, Agency Counsel, sU&gssted the Committee mi&ht want to
include language that encompasses real property negotiations as well.
nr.._IIItRII&'rTOR
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for approval of the resolution
containing the necessary provisions that will allow the Committee to
conduct closed sessions with developers in certain instances.
REDBVELOPMDT COtIMITTBB
REGULAR MEETING
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FEBRUARY 7, 1991
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10. CLOSED ft.'1SIOII
!here were no Closed Session items to discuss.
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!here be1na no further business, the D1eetina of the Redevelopment
Committee was adjourned at 5:30 p.II., to February 21, 1991.
APPROVED BY:
~...~
Esther Estrada, Chairwoman
Redevelopment CODIDIittee
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REDEVELOP!WlT COIIIUTTEE
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JmWIiY~J: ~XI6Ii
III.UTES
ADJUUJIIUW IIIH!IIUIP IIIBrIllG
!larch 14, 1991
4:00 p...
The Adjourned Regular Meetina of the Redevelopment CODllllittee was called
to order by CODIIIIittee Member Jess Flores st 4:24 p.m., in the Economic
Development Agency's Conference Room, Fourth Floor, City Hall, 300 North "D"
Street, San Bernardino.
ROLL t!&'.T.
Roll call was taken with the followina members beina present:
CODllllittee Member Jess Flores and CODIIIIittee Member Mike Maudsley. Also present
was Mayor W. R. Holcomb. Absent: Chairwoman Esther Estrada.
STAW PRESJ:Jrr
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Dennis A.
Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant
to the Mayor; Phil Arvizo, Executive Assistant to the Council; Deborah Marez,
Recordina Secretary, Development Department.
trrRR1P!t D A'PftlIInAWI!R
Timothy Sabo, Sabo & Green, Special Counsel; Cassie MacDuff, The Sun.
1. PALIIIOLIVJ: 'rIII!RS (New item introduced by Mayor W. R. Holcomb)
Mayor W. R. Holcomb said palm and olive trees are presently available
to the City and could be a cost-effective way in Which to beautify the City,
as the only costs the City would incurr are associated with relocation,
plantina and maintenance of same. Discussion ensued relative to potential
sites of the trees such as alona 5th and "E" Streets, and 4th and "E"
Streets. Mayor Holcomb suggested tax allocation bond proceeds be utilized to
finance costs associated with relocation and plantina of palm and olive trees
to properties yet to be determined.
CODllllittee Member Flores was concerned the olives would pose a
sanitation problem and safety hazard durina fruit-bearina season. Mayor
Holcomb stated the trees could be sprayed with chemicals to ensure they do not
bear fruit, and, if in fact it became too much of a prOblem, the trees could
be sold and/or removed.
Mayor Holcomb estimated that the cost to relocate the trees would not
exceed $20,000, and indicated approximately $800,000 is currently available
from the beautification fund.
REDEVELOPMENT COMMITTEE
ADJOURNED REGULAR
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MARCH 14, 1991
5327R(dlm)
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D~-K.IIA"IOR
The Redevelopment Committee recommended approval of financial
assistance in an amount not to ezceed $20,000 from its tez allocation
bond proceeds beautification fund for the purpose of financina
relocation and plantina of olive trees to City/Commissioned-owned
land. ThiB item will be forwarded to the Co_ity Development
Commission on March 18, 1991.
IlAYOR JIOLCOIIB LIft DB IIDTDG Ar 4:37 p.m.
1. In'.D'RIIT.y DEVELlIPIIIlIT CORPOIIA'I'tOll
~enneth J. Henderson, Executive Director, briefed the Committee
relative to the request submitted by Elderly Development Corporation with
respect to a six (6) month Exclusive Ript to Begotiate (ED) agreement, as
defined in the staff report.
Committee Member Flores asked if the five-thousand dollar ($5,000)
"good faith" deposit was reimburseable after six (6) months. Mr. Henderson
answered thst, if certain conditions of the ED are not met, the $5,000 would
be refunded.
Mr. Henderson pointed out that the ED Agreement will not be forwarded
to the Commission until appropriate signatures areobtained from the developer.
RBCONmnuATIOB
The Redevelopment Committee recommended that the item be forwarded to
the Co_ity Development Commission on April 1, 1991.
2. Rn>A1I!ItOB 01' GlII.__d~Y nRVRrn_l<-r COIIMISSIOlI rmrcrIOBS
Kenneth J. Henderson, Executive Director, stated this resolution
formalizes policy actions taken by the Mayor and Common Council and Communi ty
Development Commission, in connection with the Economic Development Agency
(EDA) reorganization, allowina Community Development Commission authority to
be expanded to incorporate additional functions, responsibilities and entities
of the Economic Development Agency.
DCu.....K..lllTIOlI
The Redevelopment Committee recommended this item be forwarded to the
Mayor and Common Council meetina on March 18, 1991 for approval,
continaent upon the approval of agenda items numbered "4" through "6"
without alterations.
REDEVELOPMEnT COMMITTEE
ADJOlJUED REGULAR
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MARCH 14, 1991
5327R(d1m)
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3.
COQftDA..-rOll "~1E1DII&I!II _B._E. 'rim CIft OP .". R1nnI.&DftTm Aim ftIR
CtlII_BJ.YI mnnn.n-.. cmMtSSro. O~ ..... CIft o. ..W .....I1mI..
lCeDDeth J. Benderson, Ixecutive Director, atsted the resolution
authorized the provision of City stsff to undertake functions of the Community
Development Commission relative to the cooperation aareement. Furthermore, he
noted that the adoption of the resolution would simplify collection of tax
increment relative to the administrative budaet developed by the County
Auditor Controller's office. It creates a legal form of indebtedness between
the Commission and the City and allows for said indebtedness to be placed on
the annual atstement of indebtedness submitted to the County. '
A discussion ensued regardina the proportioument of the mUltiple
fundina sources, the impact on tax increment, the various programs generating
fundina, as well .. the allocation of administrative costs and resources in
conjunction with ten redevelopment project areas.
DC4l--':-IIA"OR
The Redevelopment Committee ~ecommended that the item be forwarded to
the Community Development Commission meetina scheduled for March 18,
1991 for approval, continaent upon the approval of aaenda items
numbered "4" through "6" as aubmitted in oriainal form.
4.
Bll'l'ART.ISIIlm1rr OF BCOIlOllIC mnrRT.n_ &CIlIII!V POSITIOn
Committee Member Flores indicated that Chairwoman Estrada requested
this item be continued next week due to illness preventina her attendance.
This item 18 scheduled to be placed on the CouncU/Commiasion aaenda for March
18, 1991.
Lenathy discussion ensued regardina the impact of the other related
reorganization motions Which were suppose to go before Council/Commission.
Tim Sabo, Special Counsel, recommended to the Committee that the Cooperation
Aareement be forwarded to the Commission in conjunction with the Job
descriptions as a Whole packa&e.
Timothy C. Steinhaus, Administrator, Economic Development Agency,
suggested the Council/Commission adjourn to closed session before the meeting
of March 18, 1991. Be felt that various concerns relatina to individual
issues could be resolved at that time Which would allow for Council/Commission
action the same day.
-"'-&'1'10"
The Redevelopment Committee recommended that this item be forwarded to
the Community Development Commiasion meetina of March 18, 1991 for
discus. ion and recommendation prior to the commencement of the meeting
beina called to order. Aaenda items numbered "2" and "3" will be
forwarded within the reoraanization packaae.
REDBVELOPMBRT COMMITTEE
ADJOIJRRED REGULAR
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MARCH 14, 1991
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5. nR'f."'YOII OJl I!RIrPI.T1I ~___~YI Dnlnn....... ....,____ POSUIOIIS
U~IIII&ft01l
The Redevelopment Committee recommended that this item be forwarded to
the COImIIIlity Development COIIIIission meeUna scheduled March 18, 1991
for discussion and recommendation prior to the commencement of the
meetina beina called to order.
6. D1!T....IO. 01' CD'I'ATII CClII__.UI DRVRl'n__ ClllMISSIOR POSrrIORS
~IIIIA'I'IOW
The .edevelopment C_ittee recOllllended that the item be forwarded to
the COImIIIlity Development COIIIIission meetina of March 18, 1991 for
discussion and recommendation prior to the commencement of the meeting
beina called to order.
7. CLOSED SUSIO.
There were no Closed Session items for discussion.
8.
.a.n.l~ ....-mlIIT
There beina no further business, the Redevelopment Committee meetina
was adjourned at 5:00 p.m., to March 21, 1991.
APPROVED BY:
REDEVELOPMENT COMMITTEE
ADJOUllDD REGULAR
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MARCH 14, 1991
5327R(d1m)