HomeMy WebLinkAboutR02-Economic Development Agency
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MAYOR AlUl COIIIIOR COlJIIICIL AlUl TBB
c.-lU.TY DBVELOPIIDT COIMISSIOR
OF TBB CITY OF SAlt BBRlIAKDIIIO
IIIRUTES
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ADJOUJauw DGULAR MDTIBG
July 19, 1991
11:00 a...
The Adjourned Regular Meeting of the Mayor and Common Council and the
community Development Commission was called to order by Chairman W. R. Holcomb
at approximately 11:26 a.m., on Monday, July 19, 1991, in the Council
Chambers, City Hall, 300 Rorth "D" Street, San Bernardino, California.
ROLL t!IT.T.
Roll call was taken with the following members present: Commission
Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom
Minor; Valerie Pope-Ludlam; Rorine Miller. Absent: Rone.
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Timothy c. Steinhaus, Administrator, Economic Development Agency;
Dennis A. Barlow, Senior Assistant City Attorney; Rachel Krasney, City Clerk,
and; Deborah Marez, Recording Secretary, Development Department.
II'I'RRRS IR A'I"I'RIITIAWC1I:
Timothy Sabo, Special Counsel, Sabo and Green.
PllBLIC lOIJft'mB.a:S OR I'I'JlMS JIllT OR TBB A_A
There were no public comments.
1.
:SES!lMDT DIS'l'RICT IIlIMBD 987 - D1NRT.oPImIT DEPAJ(J:pmnJ. COBTRIBUTIOR
_ VRRDKMOJIT AHA JID'I!A!l'I'1IIJCTOD nWAwr.IBG PLAR
(co.nmity Development c~ssion)
The Commission was requested to choose one of the two following motions:
MOTIOR A:
That the Community Development Commission approve the use of tax
allocation bond proceeds as part of the financing plan for the
Chestnut Avenue Storm Drain and to financially assist eligible
low-income households negativelY impacted by Assessment District
Number 987.
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ADJOUUED DGULAR
5399R(dlm)
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COIMISSIOR AGENDA
JULY 19, 1991
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MOTIOIl B:
That the Community Development Commission take whatever action
deemed appropriate utilizing whatever revenue source deemed
appropriate to finance certain public improvements related to
Assessment District Number 987 and the Verdemont-Area
Infrastructure Financing Plan.
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Dennis Barlow, requested that the Community Development Commission take
action on either Motions A or Motion B. He explained that Motion A pertained
to funds relative to the Chestnut storm drains and would use monies from tax
allocation bond proceeds; whereas, Motion B would use funds from another
revenue source, to be determined by the Commission, for work related to other
items.
COIMISSIOIlIIIMBER BSTRADA ARRIVED AT 11:28 A.M..
Commission Member Minor made a motion, second by Commission Member
Miller to approve Motion B.
A lengthy discussion ensued regarding possible legal ramifications of
using tax allocation bond proceeds as opposed to tax increment funds. Timothy
Sabo, Special Counsel, said it was his understanding that repayment of the
storm drain would be paid from assessment charges that would be levied upon
all new developments. Therefore, it would not be considered a private source
of funds because the City'S fees were collected in the normal course of the
development, in which case it would be legally sound. However, he noted that
the Commission would need to determine what type of repayment source would be
used if the City were to pay 1/2 of the other pUblic improvements and required
repayment.
Chairman Holcomb said the motion should be that the money come from the
State College bond tax allocation proceeds and requested amendment to the
motion as such.
City Clerk Rachel Krasney said that the motion was amended to read:
That the Community Development Commission finance certain public improvements
related to Assessment District Ilumber 987 and the Verdemont-Area
Infrastructure Financing Plan utilizing funds from the State College tax
allocation bond proceeds.
Commission Member Minor made a motion, seconded by Commission Member
Minor to approve the use of tax allocation bonds from State College for the
City costs in the Verdemont Assessment District and to direct staff to prepare
appropriate documentation and bring back for final approval.
Discussion ensued regarding portions of repayment expected from the
developers and other specifications pertaining to the amended motion. Mr.
Timothy Sabo, Special Counsel, Sabo and Green, summarized the effect of the
motion as follows:
ADJOURllBD REGULAR
5399R(dlm)
COIMISSIOIl AGBIlDA
JULY 19, 1991
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1.
All infrastructure items City portion: 100% Drain; 50X
Palm/Kendall culvert and traffic signal; 50X payback for~
properties developed along Palm Avenue; 50X incidental costs
totalling $2.3 million dollars.
2.
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Will be loan from State College bond proceeds.
3.
To be paid back from developer fees when development occurs.
4. Low and moderate single-family owner occupied hardship cases.
Agency pays assessment district debt service, to be repaid when
house sells.
Mr. Sabo noted due to the fact that there is no tax increment in
Verdemont, the only sources of funds would be developer fees. He explained
the repayment process using developer fees for the Commission. Mr. Sabo
explained that the resolutions were drafted without a loan concept so Motions
C and D no longer apply. He suggested returning with the resolutions and the
agreements that would clearly outline the above details.
Chairman Holcomb stated that it was necessary to award the contract
since a source of funding was established.
The motion carried by the following votes: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Minor. Noes:
None. Abstain: None. Absent: None.
Chairman Holcomb expressed his appreciation to the Verdemont residents
for their patience and input.
2. CLOSED SESSIOR
Timothy C. Steinhaus reported there were no Closed Session items to be
heard.
3. &n.1OUJUlllmftI
Chairman Holcomb adjourned the meeting at 11:38 a.m., to Tuesday, July
23, 1991, at 12 Roon, in the KIC Room, Sixth Floor, City Hall, 300 Rorth "D"
Street, San Bernardino, California.
Respectfully submitted,
~.nl J. mnmRIIsOR
Executive Director
Secretary to the Camalssion
ADJOUUED REGULAR
5399R(dla)
COIIIISSIOR AGERDA
JULY 19, 1991
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IlAYOR AlII) CIll.1OlI COUBCIL AlII) TIIB
cumIIJJUn DBVELOPIIBBr COIMISSIOB
OF TIIB CIn OF lIAR BBRIWIDIBO
MIBUTES
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Ec_ic DeYelo~ent Agency
Budget Workshop
SPECIAL JOIIT IIIBTIBG
July 23, 1991
12:00 Boon
The Special Joint Meeting of the Mayor and Common Council and the
Community Development Commission was called to order by Chairman W. R. Holcomb
at approximately 12:23 p.m.. on Tuesday, July 23, 1991, in the Management
Information Center (MIC) Room, 6th Floor, City Hall, 300 Borth "D" Street, San
Bernardino, California.
KOLL I!'T.T.
Roll call was taken with the following members present: Chairperson W.
R. Holcomb, Mayor; Commission Members Esther Estrada; Jack Reilly; Ralph
Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam; Borine Miller.
Absent: Bone.
STAFF PRBSBIT
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Dennis A.
Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City
Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Barbara
Lindseth, Manager, Administrative Services Division, Development Department;
Phil Arvizo, Executive Assistant to the Council; Ann Harris, Main Street and;
Deborah Marez, Recording Secretary, Development Department.
OTIIBRS IB ATTBBDABCE
Dr. David Porter, Chairman of the Convention and Visitors Bureau.
PUBLIC C.......nIS OB ITEMS BOT OB TIIB AGBBDA
SPECIAL JOINT MEETING
EDA BUDGET WORKSHOP 5395R(dlm)
COMMISSION MINUTES
JULY 23, 1991
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1.
ECOIlllMIC DKVKLOPMEIn' ACDlCY PROPOSED FISr.U. VRAll 1991/1992 B1JDGBT
(C~ttv Develn,.tmt C.-iB.ian)
Timothy C. Steinhaus, Economic Development Agency Administrator,
explained the EDA Budget materials which were divided into four (4) sections:
1) Administrative; 2) Development Department (breakdown by various project
areas and Federal funding sources); 3) Convention and Visitors Bureau Budget;
and, 4) the San Bernardino Main Street, Inc. Budget. A revised sUDIDary of the
EDA goals and objectives was distributed for review.
Mr. Steinhaus reported that over 900,000 square feet of office, retail
and industrial development have been completed or assisted by the EDA, 3,000
new jobs have been created as a result of projects, approximately 300 new
dwelling units of affordable housing have been constructed totalling
approximately $51,000,000 of increased value for the City.
Barbara Lindseth, Administrative Services Division Manager for the
Development Department, explained the budget information which was distributed
for Commission review. Ms. Lindseth highlighted the major areas of difference
between the FY 1990/1991 budget and the FY 1991/1992 budget.
Discussion ensued regarding expenditures and receivables, various
agreements and instruments of indebtedness, and outside consultant agreements
for projects not managed by staff (Street Tree Master Plan, State government
lobbyist, Creative Communications, etc.).
Commissioner Estrada pointed out, relative to the increased figures
reported since 1990/1991, the difficulty in differentiating between that which
was spent by the Communi ty Development Department and the Redevelopment Agency
independently, as the budget information reflected figures of the Development
Department as a whole. The Redevelopment Committee raised concerns relative
to the substantiation for the use of monies in the future given the limited
goals and objectives which were met in 1990. At the time the budget was
initially reviewed by the Redevelopment Committee, Committee Member Mauds1ey
did not feel that the accomplishments identified by staff justified the
expenditures reported. Ms. Estrada stated she had hoped that the Budget
Retreat would have allowed the time to discuss and set the goals and
Objectives for the Agency. In this way, the goals could be measured by the
accomplishments at the end of the year.
Chairman Holcomb requested that the Mayor and Common Council and the
Community Development Commission adjourn to Closed Session at this time.
SPECIAL JOINT MEETING
EDA BUDGET WORKSHOP 5395R(d1m)
COMMISSION MINUTES
JULY 23, 1991
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2. CLOSED SESSION
At 12:41 p.m., the Mayor and Common Council and the Community
Development Commission recessed to Closed Session to give instruction to the
Commission's negotiator on the purchase of pro~rty pursuant to Government
Code Section 54956.8.
MEETIRG UCOIlVEKED
At 12:46 p.m. the meeting of the Mayor and Common Council and the
Community Development Commission reconvened from Closed Session and was called
to order by Chairman Holcomb.
ROLL t'!lT.T.
Roll call was taken with the following being present: Chairman W. R.
Holcomb, Mayor; Commission Members Estrada; Reilly; Hernandez; Maudsley;
Minor; pope-Ludlam; Miller. Absent: None.
STAFF PUSENT
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Chairperson W. R. Holcomb, Mayor; Lorraine Velarde, Executive Assistant
to the Mayor; Timothy C. Steinhaus, Administrator, Economic Development
Agency; Kenneth J. Henderaon, Executive Director, Development Department;
Dennis A. Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City
Administrator; Barbara Lindseth, Manager Administrative Services Division,
Development Department; Phil Arvizo, Executive Assistant to the City Council;
Ann Harris, Executive Director, Main Street and; Deborah Marez, Recording
Secretary, Development Department.
O'I'BERS IN A'I'TEIIDAlIICE
Dr. David Porter, Chairman of the Convention and Visitors Bureau.
1. BCOWOMIC 1'1n7IlT.n-..r ACElICY PmPOSED "Sr.ll. YEAR 1991/1992 B1JDGET
(C-ttv Develo_ent C....issionl
Discussion ensued relstive to the changes in the Enterprise Zone
ordinance and its impact on the general fund, the method and criteria of
selecting developers for projects, developer incentives offered and its impact
on the budget, and the City keeping and exercising its flexibility by limiting
negotiations with developers based on the merit of the project.
Commission Member Maudsley made a motion, seconded by Commission Member
Minor to continue the item to the August 19, 1991 Community Development
Commission meeting to allow the time to review and digest the new budget
material.
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SPECIAL JOINT MEETING
EDA BUDGET WORKSHOP 5395R(dlm)
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COMMISSION MINUTES
JULY 23, 1991
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The motion carried by the following vote: Ayes:
ReillY; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller.
Abstain: Bone. Absent: Bone.
Members Estrada;
Boes: Bone.
Commission Member Maudsley announced that th& Redevelopment Committee
will be meeting on August 8, 1991 and asked that any comments relative to the
budget be forwarded at that time for discussion and recommendation.
3. AD.l0n..........J:
Chairman W. R. Holcomb adjourned the Mayor and Common Council and the
Community Development Commission meeting at 1:02 p.m. to Wednesday, July 24,
1991, at 11:00 a.m., in the Management Information Center (MIC) conference
room, located on the 6th floor of City Hall, 300 Borth "D" Street, San
Bernardino, California.
Respectfully submitted,
~J:ll J. JIBIIlDSOR,
Bzecutive Directorl
Secretary to the CGBDission
SPECIAL JOINT MEETING
EDA BUDGET WORKSHOP 5395R(dlm)
COMMISSION MINUTES
JULY 23, 1991
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