HomeMy WebLinkAboutR02-Economic Development Agency
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&5UIiV.u.OPIIIIr COIIW.Urlili
MI.urIS
DC:lJLAR RDrIBG
J1IIUI 6. 1991
4:00 p.a.
The R.gular M..tina of the Redev.lopment Committee was called to order
by Chairperson Isther Istrad. at 4:54 p.m., in the Iconomic Development Agency
Conference loom, Fourth Floor, City Hall, 300 North "D" Str..t, San Bernardino.
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Roll call was taken with the followina members beina present:
Committee Chairperson Isther Istrada; Committee Members Jack Reilly and
Michael Maudsley.
ll'I'AW 1tIn!!l1!WP
Mayor W. R. Holcomb; Timotb,y C. Steinhaus. AdminiBtrator, Iconomic
Development Agency; Eenneth J. Henderson. Executive Director, Development
Department; Dennis Barlow, Senior Asslatant City Attorney; John Hoeger,
Development Division Manager. Dev.lopment D.partment; Lorraine Velarde,
Ex.cutive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the
Council; Deborah Marez, Recordina Secretary, Development Department.
OTIIIU III A'l"l'RllDA1Ir.I!
Timotb,y Sabot Special Counsel to the Iconomic Development Agency;
Lawrence Hampton and Alonzo Davenport from the P.A.L. Center; Rodney Shain,
Michael John Enterpris.. Brok.r....
6. PROVISlftW.a.T. .A,1!1!WI'W'D&'PIm T_..&~ CPR" 1;':__111;.11 CRTT.n 1':." PIN"W:!D&.
(Taken out of order)
Eenneth Henderson, Executive Director, explained the item involved a
requ.st for City financial assiatanc. in the amount of $120,180 for start-up
costs associated with the Child Care Center. The total amount of request for
assistance i. approximately $161,000, but $41,212 will be financed by the
County of San B~rnardino. A breakdown of expenses was provided in the Staff
Report. The item wa. put on the Agenda at the request of the Mayor and was
pursuant to a meetina conducted by Mayor Holcomb with Dr. Mildred D. Henry,
President. Provisional Bducational Services, Inc..
Lawrence Hampton and Alonzo Thompson, staff of the PAL Center. made a
brief video-tape pre.entation describina the various programs provided by the
PAL Center. Child Care Center site information was also presented.
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A 1enathy diacuasion ensued reaarding the start-up costs, equipment and
personnel expenditures, landscape and operational funding, and four-track
system year round achool.
Chairwoman Bstrada atated that aeveral alencies had been denied
Community Block Grant Funding recently during the CDBG application process.
She was concerned that PAL'a request for funding circumvented the competitive
application proceaa which is required of all app1icanta.
Staff waa directed by the Redevelopment Committee to investigate
possible alternative funding aourcea to finance the request submitted by the
PAL Center for the implementation of i t8 Child Care Center.
~ ..&'PTOII:
The RedeveloPllent Co.-Htee reco.-ended this item be continued to June
20, 1991.
4. PROP01IB tI1InPPIE I;......&.K .AY IlASJI:&I;....~........1 '11ft nl::lll'...A1In AVDDBS
(Taken out of order)
~enneth Henderson, Executive Director, aummarized the ataff report and
co.-ented on financing difficulties which were encountered during the funding
of the project. He met with Special Counsel, Timothy Sabo, who did not advise
the uae of unemc_bered tax increment moniea to finance the project due to IRS
rules ..aociated with the uae of tax exempt bond proceeds. It was also
indicated that it would not be proper or 1elal for the Aaency to take a
participation and ownership po.ition in the venture in anticipation of the use
tax exempt bond proceed.. Staff reco.-ended the .tatus report be received and
filed.
Timothy Sabo, Special Counsel, explained in detail the financing
alternative. available a. outlined in the staff report.
Rodney Shain, Michael John Enterprise. Brokeraae, reported on the
nelotiations with CALTlARS, expansion of the freeway ae it relate. to the
project, and the re-evaluation of financing being reque.ted by his company.
COmBittee Member Maudsley expres.ed hia concerna inasmuch a. he felt
the present statu. differred in concept than what had orilina1ly been proposed
relative to equity contributions. The risks incurred by the City versus the
risk of the developer was out of balanced. He felt the riak of the deVeloper
was 1es. than the City'. and recommended the City take the role a.
facilitator. Since there is no cOmBercia1 lender involved the funding from a
private sector is nil thereby imposing the risks on the City.
Mr. Shain shared his concerns and stated that they would be more than
happy to canva.. for a commercial lender. Additionally, he noted that a
residential developer was looking for office space and would commit occupying
half an office building.
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Mr. Benderaon aaid apecific deal pointa will be recommended at the next
meetina baaed on the infomation provided by Mr. Sabo and Mr. Shain. Staff
recommended that the Redevelopment Committee receive and file the atatus
report.
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Receive and file. Brina back to the Redevelopment Committee meetina in
July, 1991.
7. .l.llIK....I."ftW"T. 1IftNI .ASnRDII1rr
(Taken out of order)
Timotby Stelnhaua, AdIIiniatrator for the Iconomic Development Agency,
aaid a major goal of the Aaency waa to attract major induatry to San
Bernardino to create quality joba and projecta. Be felt the Greater Loa
Anaelea World Trade Center Aaaoelation (ClLAWTCA) would be inatrumental in
accompliahina the &oal by utilizina their world-wide network for dealina with
international countriea. Be ..ked ClLAWTCA to conaider formina an organization
in San Bernardino; aubaequently, ClLAWTCA conducted a feaaibility atudy on the
eatabliahment of e beae in San Bernardino and provided a propoaed plan. Mr.
Steinhaua recoaaended pureuina Part I, the baCkground analyais phaae, of the
International Reeda Asaesement Proposal.
Chairwoman Istrada requeated more clarification pertainina to the needs
asseaement propoael. The ClLAWTCA included the provision: "The ClLAWTCA will
contact foreian baaed firma that might expand and/or relocate their business
Southern California in the next five years, and government economic
development repreaentatives froa thoae countries, to identify major criteria
used in the relocationlexpanaion procesa and final decision."
A lenatby discuaaion enaued regardina the economical and industrial
benefita to the City, impleaentation of the plan'a strategy and delivery of
aervice to international buaineasea.
Chairwoman latrada atated top priority ahould be given to canvaaaina
international firma to aacertain who would be intereated in eatabliahina their
budnesa in San Bernardino and then facilitatina in the development of
relocation of aaid induatry. She did not want to aee the ClLAWTCA used as a
marketina agent to proaote the product of internationally-owned companies
already located.in San Bernardino.
Committee Member Maudsley expressed hia desire for a more well-layed
out project outline.
Mr. Steinhaua susgeated invitina the repreaentatives of the GLAWTCA to
the next Redevelopment Coamittee meetina to thoroughly explain the proposal
and address 8DY queationa.
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Den! .IIA'PTOW:
The Redevelopment Comaittee recommended this item be continued on June
20, 1991.
8.
I...."1m VAI_T.W. n1!VInn_... .&t!WW!Y ,.w... 01' OWICR SPACK
Timothy SteiDhAua summarized the st.ff report Which det.i1ed the terms
and conditions of the 1e.se of office .p.ce of the Inland V.11ey Development
Aaency in the EconOllic Developaent Aaency buildina. He recommend that the
Community Development Commi..ion .uthorize the Izecutive Director to execute a
1ea.e of 1,023 squ.re feet of office .p.ce in the City H.11 Annex to the
Inland V.lley Development Aaency.
A 1enathy di.cus.ion ensued re..rdina 1e..ina EDA office sp.ce as
oppo.ed to Borton AFB .p.ce, the uti1iz.tion and .ccount.b1e expenses of IDA
personnel, equipment, utili tie. and office .p.ce, and the perceived
monopo1iz.tion of IVDA .ctivitie. and st.ff by the City.
The Redevelopment Committee requested information re1.tina to the
services and oper.tina cost. the IVDA will be payina for and letters of
support from the other member. of the IVDA re..rdina the proposed 1e.se
.greement.
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Forw.rd the requested information and st.ff recommend.tion to the
Community Development COIIIDis.ion on June 17, 1991 for .pprov.1.
5.
1:ru1R3. MlDImRImI BID .v.aMl lOR LIarn::M: Aim somm SYS~
(Taken out of order)
Edw.rd Flore., Housina Development Sp.ci.1ist for the Development
Dep.rtment, summarized the .t.ff report which .110c.ted use of Co11.tera1ized
Mort...e Oblig.tion (CMO) residus1 fund., needs ....s8lDent, and the biddina
process. St.ff recommended that the Mayor and Common Council .w.rd the bid
for 1iahtina and aound syatems .t Sturaea Auditorium to Matty Sound System
Contr.ctors in the amount of $38,716.00.
The Committee r.ised .000e concerns .s to the technic.1 expertise of
st.ff member. charged with the reaponaibi1ity of prep.ring the specific.tions
and eV.1u.tina the responses to the bid solicit.tion. Further, the Committee
directed st.ff to conduct an ana1y.i. of the propo.ed recommend.tion and to
determine if technic.1 expertise is .v.i1ab1e throuah Matty Sound Systems that
will ensure the .ystem(s) to be inst.11ed is/.re .dequ.te.
Or.n........a.,.YOR:
The Redevelopment Committee recommended this item be continued on June
20, 1991.
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2.
I!RIn'IP-'I. CITI' ~_.&nwl.I!III"IDeT1l 1mVI!I.n.....
(Taken out of order)
Kenneth Henderson provided bsck&round on nelotiations with Chase
Manhattan Bank as it related to the Industrial Development Revenue Bonds,
Series 1984A .. detailed in the staff report. He explained the form motion
was to provide Chase Manhattan Bank an opportunity to resolve the situation
with Schurain Development. Chase Manhattan Bank would like to prevent the
project loina into bankruptcy and Schurlin ..intainina control. Steff
reco..ended approval of the Resolution, AIIendment lfumber Five to the Loan
Alreellent, and Supplement lfumber Five to the Indenture, currently beina
prepared by Schurlin Development leld counsel.
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The Redevelopment COIBittee recommended this itell be forwarded to the
Mayor and Common Council on June 17, 1991 for approval.
3. PlCO ~- uwz. PIIfU1!CT
Kenneth Henderson, Executive Director, explained that the Water
Department discovered a problell relative to the proximity of the sewer lines
and the water ..in durina a review of the project plan. To correct the
problell additional fundina 18 needed. Staff recommended that the
Redevelopment Comaittee recomaend to the Mayor and Common Council approval of
a supplemental appropriation of CDBG funds in the amount of $17,799.00 for the
installation of a new six inch (6") water ..in to be installed dona Second
Street and retire the existina two inch (2") water main.
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The Redevelopment Comaittee recommended this item to the be forwarded
to the Mayor and Co.-on Council for approval on June 17, 1991.
1. ~.&.. n.ov _ I!RWPD.&I_ CIft P1tft.TI!ef .a'DW.a
(Taken out of order)
The Redevelopment Committee recommended review of the Cash Flow
Analysis Inforaation be continued to the next meetina due to time
constraints.
DCi'lIlo.....--_II&'l'TOR:
The Redevelopment Committee recommended this item be continued on June
20, 1991.
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The Redevelopment Committee recessed to Closed Session at 6:50 p.m. to
discus. the with it. neaotiator the purchase, sale, exchanae or lease of real
property and aive instructions to its neaotiator concernine the price and
terms of payment for the purchase, sale, exchance or lea.. of real property
pursuant to Government Code Section 54956.8.
1!RI1(Z 01lD!UI.&V mYm.A. 1PInnt!.&.-TO.
The Redevelopment Com.ittee recommended staff proceed with approach set
forth in the Chuck Oberahaw ml!llOrandllll and return with a comprehensive
aareement reaardins the relocation of Chuck Obershaw Toyota.
10. 'n.T~
There beins no further business, the Redevelopment Committee meetins
was adjourned at 7:05 p.m., to June 20, 1991.
APPROVED BY:
,
Esther Estrada, Chairperson
Redevelopment Committee
IIEGULAIt IIIftDG IUIlUXJ5S
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