HomeMy WebLinkAboutR02-Economic Development Agency
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IlAYOR AlID COIIIIB COlJIICIL AlID TIlE
c.u.,..,.,,,J.rr DBVELOPIIElIT COIIIISSIOB
OF TIlE Clrr OF SAlI _AlmlBO
IIIBUTES
REGULAR IID'rIBG
Septeaber 3, 1991
11:00 a.a.
The Regular Meeting of the Mayor and Common Council and the Community
Development Commission was called to order by Chairman, Mayor W. R. Holcomb,
at approximately 11:08 a.m., on Tuesday, September 3, 1991, in the Council
Chambers, City Hall, 300 North "D" Street, San Bernardino, California.
KOIJ.. I!&T.T.
Roll call was taken with the following members present: Chairman W. R.
Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez;
Michael Maudsley; Tom Minor; Valerie Pope-Ludlam. Absent: Commission Member
Norine Miller.
STAW PRESERT
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Dennis A.
Barlow, Senior Assistant City Attorney; Doris A. Daniels, Acting Housing
Manager, Development Department; Edward Flores, Housing Development
Specialist; Rachel Krasney, City Clerk; and Deborah Marez, Recording
Secretary, Development Department.
OTHERS IB ATTEBDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Dan Fauchier, Empire
Bay; Ron Saienni, HomeAid; Cassie MacDuff, The Sun.
PUBLIC CUft'mlITS OR lTEIIS JIOr OR TIlE A-A
COBSERT r.AT.1!WnAR
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, that the Consent Calendar items numbered "I" through "7" be
adopted, except for item number seven (7).
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None.
Abstain: None. Absent: Commission Member Miller.
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COIIIISSION MINUTES
SB~ 3, 1991
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1. COII_A.HI D1!VRJ.n1*l!ll'l' COIKISSIOIIIIIIm'DS
Commission Member Pope-Ludlam made s motion, seconded by Commission
Member Maudsley, to approve the Community Development Commission minutes dated
Julv 24. 1991 aftd AURUBt 5. 1991, as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. !loes: !lone.
Abstain: !lone. Absent: Commission Member Miller.
2. RBIlJlvKLOPIIEIIT \OUftU:rrJIJI IIIIm'DS
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, to receive and file the Redevelopment Committee minutes dated
June 6. 1991, as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. !loes: None.
Abstain: !lone. Absent: Commission Member Miller.
3. LIRV&IIV PROPEIln' ACOUISrnOIl
(Mavor and Common Council)
Council Member Pope-Ludlam made a motion, seconded by Council Member
Maudsley, to waive further reading of the resolution and adopt same:
RBSOLDrIOIl BUMBlR 91-393
RBSOLurIOII OF !'lIB crn OF SAIl -&111I1110 ADrHOllIZIIG !'lIB BDCDrIOIl OF A
GUlIr DUD COBVJlUIG CDrAIII S1JJlPLD'S PROPEIln' LOCADD 011 !'lIB WEST SIDB
OF DBL llOB! AVBIIlJB BBrWBBlI IIAJlSIIALL IlOULBVAllD AlID BlJRBn SrlW5l:, III !'lIB
crn OF SAIl -&111I1110, TO !'lIB IUWJ5vKLOPIIEIIT AGBlICY OF !'lIB CITY OF SO
1lBDAllD11IO .
The motion carried by the following vote: Ayes: Council Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None.
Abstain: None. Absent: Council Member Miller.
(Communitv Develoument Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, to authorize the Executive Director to purchase the Library
parcel located on the west side of Del Rosa Avenue between Marshall Boulevard
and Bureka Street from the City of San Bernardino and to increase the
Department budget by $87,725.
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The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Roes: Rone.
Abstain: Rone. Absent: Commission Member Miller.
4. ImftIAT. 1!.1OID'TT IIBSOLDTIOIIS pJnllRl!1! li_';:UXY
(Mayor and Common Council)
Council Member Pope-Ludlam made a motion, seconded by Council Member
Maudsley, to waive further reading of the resolution and adopt same:
H!lOLDTIOII tltMUR 91-394
IIBSOLDTIOII OF TIll IlAYOR AlUl COIR)II C01IIICIL OF TIll CITY OF SAIl
1!.RRllnDIIO. CALIlOau, JUnIlG FDDIIIGS AlUl UDIlfIlIlATIOIIS AS TO TIll
BlluEJ.T OF 1JJIll1!1!'l'&r11IG A CD'rAIlI PlIBLIC J.I'Il'Id)VIilU1U PROJBCT lOR TIll
1JPTOWII uul'ivALOPIIDT PROJBCT AIIBA (PIOIIBD \Alil'lI5ud).
The lIIotion carried by the following vote: Ayes: Council Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Roes: Rone.
Abstain: Rone. Absent: Council Member Miller.
(Community Develonment Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, to waive further reading of the resolution and adopt same:
IIBSOLDTIOII _101 5300
IIBSOLDTIOII OF TIll CQ'I__J.:fY DBVBLOPIIDT COIMISSIOII OF TIll CITY OF SO
_nDIIO. CALIlOau, JUnIIG nllDIIICS AlUl lIJ5"umlDTIOIIS AS TO TIll
Ill'ilUnT OF UlW"..drT1lG A CJ!II'I'&TII PlIBLIC UIl"INVIIl'II5III]; PROJBCT lOR TIll
1JPTOWII UJIJIvALOPIIDT PROJBCT AIIBA (PIOIIBD 1iIII'II5TI'iK:l).
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Roes: Rone.
Abstain: Rone. Absent: Commission Member Miller.
5. CQIIPltKnKRSIVB BODSIlIG .&'l"l'n1Pn.lRILITY STRATEGY
(Community Develonment Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, to receive and file the attached report regarding the
Comprehensive Housing Affordability Strategy (CRAS).
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Roes: Rone.
Abstain: Rone. Absent: Commission Member Miller.
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6.
STATUS OF nr....n-PBltCBRr (2M) SET ASIDE LOW-TO-II)DBUTB I1ICOIIB HOUSING
lInm
(Communitv Develooment Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Maudsley, to receive and file the staff report regarding the status of
the Twenty-Percent (20%) Set Aside Low-to-Moderate Income Housing Fund.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None.
Abstain: None. Absent: Commission Member Miller.
7. y"..I/llmIlr-'1l1!' JII'II'II'R'I'ImC'rUU ""'1Ir.IlIG ASSISTABCB GUIDELINES
(Communitv Develooment Commission)
Commission Member Minor asked for clarification relative to the
criteria for receiving assistance for low-and-moderate income households as
well as, property owners of large parcels with extensive assessment fees.
Kenneth Henderson, Executive Director, Development Department,
explained that mortgage payments, plus the annual assessment, must exceed
thirty percent (30%) of the gross household income or forty percent (40%) of
the net household income to qualify for low and moderate income status. This
proposal is at one hundred percent (100%) of the median income, which goes up
to $50,000 for a household of five.
Chairman Holcomb said the large parcel assessments will be dealt with
on a case by case basis. It was noted that Roger Hardgrave, Director of
Public Works, will be proposing a different strategy which will be submitted
at a future date.
Commission Member Minor made a motion, seconded by Commission Member
Reilly, to approve the guidelines for the Verdemont-Area Infrastructure
Financing Assistance Guidelines.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlsm. Noes: None.
Abstain: None. Absent: Commission Member Miller.
BID OF COlISDr 1!&T.1n!"n
8. A1m1lII/C5n'JIRTK .&1JR& IP'RV'rI"AT.tUt'IOB 1'1.1..
(Communitv Develooment Commission)
Chairman Holcomb announced that the Community Development Commission
will conduct a workshop regarding the financing and implementation plan for
Sunrise Village Revitalization Plan (Arden/Guthrie Area) prepared by HomeAid,
Inc., and take any action deemed appropriate at lunchtime in the Manangement
Information Services Room, on the 6th Floor.
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9.
"B" S'I'II1/R'I' RRTDGB POlIDIlIG
(Community Deyelooment Commission)
Commission Member Estrada made a motion, seconded by Commission Member
Maudsley to authorize the use of $1,000,000 in Bond Proceeds for the
construction of the South "E" Street Bridge expansion and to increase the
Department budget accordingly.
The motion carried by the fOllowing vote: Ayes: Commission Members
Estrada; ReillY; Hernandez; Maudsley; Minor; Pope-Ludlam. Roes: Rone.
Abstain: Rone. Absent: Commission Member Miller.
10. ODDEST lOR PROPOlllT-'1 (1IOWlftOWlI PROJECT)
(Community Develooment Commission)
ROTIO.: That the Executive Director of the Development Department be
authorized to prepare and issue a Request for Proposals (RFP)
to develop a large-scale redevelopment project in the Central
City Rorth Project Area.
Commissioner Estrada questioned the role and function of the
Redevelopment Committee because the motion before the Community Development
Commission differed from that which was recommended by the Redevelopment
Committee. A lengthy discussion ensued regarding the role and
responsibilities of the various Committees and the significance of following
protocol to contest recommendations. Commissioner Estrada stated that,
according to protocol, the Redevelopment Committee's motion should have come
before the Community Development Commission as recommended. Furthermore, if
there were BDY concerns or changes in the recOllllended motion, then it could
have been discussed and changed at the time of the Community Development
Commission meeting.
Commission Member Estrada made a motion, seconded by Commission Member
Minor to grant an Exclusive Right to Regotiate (ERR) to Rancon for the block
between Fourth and Fifth Streets, and D and E Streets.
Mr. Henderson explained staff was concerned about the development
compBDY having an ERR agreement that could not be terminated at the time the
Agency sought to engage other developers. For this reason, the ERR that was
submitted to the Redevelopment Committee contained certain benchmarks of
performance and certain time frames associated with those benchmarks to ensure
the developer proceeded in a manner that would include certain accomplishments
and objectives. The ERR called for certain activities to occur at specific
intervals and the entire agreement is for 240 days. At BDY time, staff can
analyze the progress being made by the developer and opt to terminate the
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agreement at that point in time or continue with the agreement. Based upon
the information, that was presented by the developer and also to the
Redevelopment Committee, it was unanimously recommended that the ERN agreement
between the Agency and Rancon Development Corporation be approved.
Commission Member Maudsley noted the Commission'S backup report did not
include the agreements reviewed by the Redevelopment Committee. He said there
were significant provisions contained.in the agreement Which outlined specific
timelines for development.
Mr. Henderson atated thoae docUlllenta were not included because it was
determined that staff would prepare and issue an RFP. He said the ERN
agreement could be provided for review.
Commission Member Hernandez made a motion, seconded by Commission
Member Estrada to continue the item until after lunch, to allow time to review
the ERN.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Boes: Bone.
Abstain: Bone. Absent: Commission Member Miller.
U-l. SAW 1t1!1IWAlmtllO JlEJCIIRlIlI1IMn DS'I'ORATtOll PROJBCT
(Communitv Develoument Commission)
JIlTION A:
That the Community Development Commission approve the deal
points agreed upon by the Development Department and
Empire Bay, a California Joint Venture, as set forth in
the staff report and direct Agency Counsel to prepare an
appropriate Owner Participation Agreement.
JIlTIOB B:
That staff be authorized to advance to Empire Bay, a
California Joint Venture up to $1.1 million dollars of the
$1.4 million dollars in Basic Assistance in order to close
various escrows related to the San Bernardino Neighborhood
Restoration Project.
COIIIISSION IIIlMBBa POPE-LDDLAII VAS EXCUSED Ar 11:29 A.M.
Timothy Steinhaus and Commissioner Pope-Ludlam explained the deal
points in this proposal were different from the deal points looked at by the
Housing Committee. Staff was instructed by the Housing Committee to
reconsider the deal points discussed at the meeting, and come back with
reasonable alternatives Which would consider the social needs of the
particular community and bring it to the Commission, rather than back to the
Committee.
COIIIISSION IIIlMBBa POPB-LDDLAII JIETlJRIED Ar 11:30 A.II.
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Mr. Henderson said the deal points were developed between the Housing
Committee and Commission meetings. Since there were escrows scheduled to
close within the week, the Housing Committee indicated some action would be
necessary, if in fact the project would go forward. He summarized the deal
points as detailed in the staff report.
A lengthy discussion ensued regarding the project's 6X management fee
$600,000, the 3X profit of $300,000 and the silent deed of trust program. Mr.
lenderson said the management fee is not construed as profit because it would
be used to pay for project management costs.
Dan Fauchier, owner of the Fauchier Group and developer for Empire Bay,
answered questions pertaining to the rehabilitation, owner-occupation and
relocation of homes associated with the Empire Bay project and Project Home
Run's infill program. He reported he was working closely with Project Home
Run's staff to identify the appropriate target sreas for infill.
Commission Member Hernandez voiced his concerns relative to the impact
on the infill project, social impact relocating problem families to other
parts of the City, and the costs associated with moving and rehabiliating
homes.
Mr. Fauchier said preliminary to the proposal, feasibility studies were
conducted about rehabilitating the entire block. Factors such as house
placement and refiguration were considered and the study revealed it would be
more cost effective to move the homes to another site. The social impact
aspect was also considered. Relocated individuals would be tracked and
provided with counseling and other community services available.
Commission Member Minor requested close monitoring of the project to
ensure implementation and compliance occured. Mr. Henderson said agreement
provisions were in place and the Development Department's Contract
Administration staff would monitor the project to ensure compliance of
covenants.
A lengthy discussion ensued relative to the project's $1.4 million
dollars impact to the Twenty Percent Set Aside fund, the projected return of
fundB within the nezt few fiscal years, the costs aSBociated with PhaBe I, aB
well as, overall costs to complete the four blocks.
Mr. Henderson said the fund currently has an unencumbered balance of
more than $1.3 million dollarB. The current requeBt would consume an initial
$1.1 million dollars, Which would reduce the unencumbered fund balance of
roughly $200,000. Staff anticipateB receiving an $2.6 million dollarB for the
fiscal years 1992/1993 and 1993/1994 from the DukeB & Dukes project. AIBo, in
1993/1994 approximately $5.2 million dollars from the construction, lease up
and the provision of permanent finanCing from the Ramona Senior Housing
Complex and the Highland Lutheran Senior Housing Complex.
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funding
Commission Member Estrada was concerned because actual overall
was not known for the entire project; therefore there could be no
determination of how much assistance would be required of the Agency.
reluctant to invest money into one block just to find out a year later
the project could go no further.
She was
that
Mr. Fauchier said the intention of Empire Bay was to develop and
process of application for BOMB funding under the Cranston/Gonzales Act.
Staff is assisting with the application preparation to qualify for a
Comprehensive Bousing Affordability Strategy (CBAS) grant. Be believes the
grant will be successful with the support of the Commission in Obtaining those
matching funds. '
A lengthy discussion ensued regarding the projected costs and their
source of funding as reported on Exhibits 1, 2 and 3. Mr. Benderson
summarized the intent and purpose of each exhibit for the Commission's
information. Be noted that Exhibit 2 listed the amounts of submitted requests
to the Development Department, but did not reflect the staff or the Bousing
Committee's recommendation for assistance, just the projects under
consideration at present.
Commission Member Bernandez felt the proposal was a redevelopment
project because it dealt with the eradication of blight and questioned the use
of Twenty Percent Set ABide funds. Be susgested using 80X percent monies for
the project.
Commission Member Maudsley said the Bousing Committee discussed using
Twenty Percent Set Aside and also the ability of the Commission to allocate
more of the funds for houBing. Be pointed out that the Commission was not
bounded by those percentages and the Commission could set its own priorities
and its own budget on a weekly basis or an annual basis. Be stressed the
urgency about this particular project and recommended the issue be voted on
immediately. Be assured his colleagues that the Bousing Committee would bring
forth recommendations of proposed funding source based on the tax increment
and the total resources of the Agency.
Chairman Holcomb recommended this item be continued at the lunch
workshop for further discussion.
RECESS TO LDlICJI unvrll1lOP
Chairman Holcomb recessed the meeting at 12:03 p.m. to the Sixth
Floor's, Management Information Conference Room for a luncheon workshop.
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LtlIICBIOlI WOBSBOP
8. &Vnn/crrrRlPTB av.& nvt'l".I.I7.A'I'IOB M.A.
(Communitv Deve10nment Commission)
Chairman Holcomb said the first step would be to focus on attaining the
money from the Inland Valley Devdopaent Alency's (IVDA) Twenty Percent Set
ABide to fund as much of the project as possible. He recODDended a formal
request be sent to the IVDA to request a cODDitment of Twenty Percent Set
ABide flDlds up to $4,000,000 to be used for Arden and Guthrie. That amolDlt
would provide the City with public assistance in doing the off-site and rehab
of various routes.
A lengthy discussion ensued regarding the percentages of shares and
contribution of same. The City holds 771. and the COlDlty between 15-171. which
amolDlts to 931. combined. Chairman Holcomb requested that the City allocate
its share of the tax increment portion to the amolDlt generated within the City
limits. He stated the concurrence of the COlDlty was also necessary and
recommended a formal request be made to the COlDlty to allocate their share, up
to $4,000,000.
Commission Member Bstrada said the Commission needed to be made aware
that some Board members were not in agreement with the ratio of territory in
the redevelopment project area as observed at the last IVDA Board meeting.
She felt even if formal request was made for funds, the IVDA Board may not be
ready to accept our recommendation and there may be a need for more
negotiations. She reported the Mayor stated he had hoped that the ratio be
proportionate to the geographical participation in the IVDA.
Commission Member Mauds1ey reminded the CODDission that HomeAid's
advice not to proceed lDl1ess there was lDlity of the homeowners. He questioned
the success of the revitalization plan and what kind of impact there would be
if there was adequate funding, but no support from the homeowners.
Ray Salvador, Administrative Assistant to the Mayor, said the
Homeowner's Association was ready for incorporation. There is the support of
80S of the homeowners, although there was some question of the homeowners
involved with the lawsuit against the City.
Chairman Holcomb said the private sector Who bought properties at low
prices and/or who are not members of the Homeowner's Association should not be
looking for rehab assistance from the City. The assistance should be provided
for homeowners who stayed with their property and showed a good faith effort
to try to keep it up to reasonable conditions. Furthermore, non-members of
the Homeowner's Association will be assessed a business license of $100,000 a
year.
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Commissioner Estrada ssid the IVDA Board members were receptive to
addressing Arden Guthrie immediately because of the familiarity with the
situation. She urged her colleagues to support the revitalization plan.
Commission Member Reilly made a motion, seconded by Commission Member
Estrada to request the Inland Valley Development Agency to allocste the City
of San Bernardino's portionate share of the Twenty Percent Set Aside Fund up
to $4,000,000 for the Arden and Guthrie project.
The motion failed by the following vote: Ayes: Commission Member
Estrada; Reilly; Minor. Boes: Commission Members Hernandez; Maudsley;
Pope-Ludlam. Abstain: Bone. Absent: Commission Member Miller.
Further discussion ensued concerning the need to use funds for other
housing problems within the IVDA area and other wards of the City, the amount
of time and money already invested, the need to establishing priorities on how
the appropriated monies would be spent and the pending lawsuit by the property
owners.
Mr. Henderson said the Property Owners Association has invested a lot
of time and effort preparing CC&Rs, and establishing the Centralized
Management Tenant Screening process. He stated it was extremely important
psychologically for there to be some positive action taken by the Council to
provide the property owners some incentive to continue. Commissioner Estrada
added there was a message being sent by asking the IVDA to support a plan
which the Commission could not support.
Commission Member Reilly made a motion, seconded by Commission Member
Estrada to make formal written request to the Inland Valley Development Agency
to allocate the City's proportionate share of tax increment to the City of San
Bernardino for the Arden/Guthrie project.
The motion carried as follows: Ayes: Commission Members Estrada;
Reilly; Maudsley; Minor; Pope-Ludlam. Boes: Commission Member Hernandez.
Abstain: Bone. Absent: Commission Member Miller.
Commission Member Estrada made a motion, seconded by Commission Member
Minor to make formal written request to the County of San Bernardino to
contribute their proportionate share of IVDA tax increment to the City of San
Bernardino for the Arden/Guthrie project.
The motion carried as follows: Ayes: Commission Members Estrada;
Reilly; Maudsley; Minor; Pope-Ludlam. Boes: Commission Member Hernandez.
Abstain: Bone. Absent: Commission Member Miller.
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o RS-l. so RlnPIIAImIllO IIEICIIIUl1llllKln U!lTOlIATTON PROJECT
(Community Development Commission)
Commission Member Maudsley made a motion, seconded by Commission Member
Minor to approve the following:
Iv.rION A:
The deal points agreed upon by the Development Department
and Empire Bay, a California Joint Venture, as set forth
in the staff report and direct Agency Counsel to prepare
an appropriate Owner Participation Agreement.
Iv.rION B:
Authorize staff to advance to Empire Bay, a California
Joint Venture, up to $1.1 million dollars of the $1.4
million dollars in Basic Assistance in order to close
various escrows related to the San Bernardino Neighborhood
Restoration Project.
The motion carried as follows: Ayes: Commission Members Estrada;
Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain:
None. Absent: Commission Member Miller.
CLOSED SESSION
o RS-2. A1l.TllI1I!II TO CLOSED SESSION
The Mayor and Common Council and Community Development Commission
adjourned to Closed Session at 1:48 p.m., to give instruction to the
Commission's negotiator on the purchase of property pursuant to Government
Code Section 54956.8. The real property which the negotiations concern is
generally located at north of Marshall Blvd and east of Del Rosa.
DD OF CLOSED SESSION
MBETIBG UCCllIVJUUOU
At 1:58 p.m. the meeting of the Community Development Commission and
the Mayor and Common Council was called to order by Chairman W. R. Holcomb in
the Council Chambers.
ROLL I!AT.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. Absent: Commission Member Norine Miller.
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ll'I'A", PRESElIT
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.
10. DODEST lOR PROPOSAUI (DOWImlWII PROJ'BCT)
(Community Development Commission)
MOTION:
That the Executive Director of the Development Department be
authorized to prepare and issue a Request for Proposals to
develop a large-scale redevelopment project in the Central
City North Project Area.
Timothy C. Steinhaus, Administrator for the Economic Development
Agency, addressed the earlier concerns relative to the benchmark dates which
were detailed in the Exclusive Right to Negotiation proposal from Rancon
Development Corporation. He noted the property was not the City parking lot,
but the block bounded by Fourth & Fifth Streets and D & E Streets.
Commission Member Pope-Ludlam said she still had the same concerns and
questioned the free enterprise system.
Mr. Steinhaus explained the concept of an ERN is to provide the
developer with a comfort level that assures that their money and time is
protected from competitors in the preliminary design.
Dennis Barlow, Senior Assistant City Attorney, added that even after
the ERN ran its course and a solid proposal was in place, a notice must still
be given to the property owners in that area to see if they want to present
something that would be in competing proposal. There is still the concept of
some kind of bidding or RFP issue because people have the right to submit
those. The developer doesn't automatically get to build a project because
they enter into an ERN - there I s no guarantee.
Commission Member Estrada made a motion, seconded by Commission Member
Minor to approve the Exclusive Right to Negotiate Agreement with Rancon
Financial Corporation.
The motion carried as follows: Ayes: Commission Members Estrada;
Reilly; Hernandez; Maudsley; Minor. Roes: Commission Member Pope-Ludlam.
Rone. Abstain: Rone. Absent: Commission Member Miller.
UGlJLO IIBBTIIIG
5452R (dIa)
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CCRlISSIOR IIIIUTBS
SJlrrMCDIR 3, 1991
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12.
&hTOUIUIl'lIUI""J:
Chairman Holcomb adjourned the meeting of the Mayor and Common
Council/Community Development Commission to Monday, September 16, 1991, at
11:00 a.m., in the Council Chambers of City Hall, 300 Horth "D" Street, San
Bernardino, California.
Respectfully submitted,
~Il J. -UllOR,
Bzecutive Director/
Secretar,r to the Caaaission
REGULAR IIIBTIlIlG
5452R (d1ll)
-13-
COIWIISSIOR MIlIllITES
Sarr~ 3, 1991
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