HomeMy WebLinkAboutR04-Economic Development Agency
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DB~LOPIIBRr DBPARrll~r
OF TBB CIft OF SAB lJR1l1UllnlllO
uouzsr FOR CONirSSIOR/COUlICIL ACTIOR
From:
ICEImBTR J. RERDERSON
EXecutive Director
STllllGBS AUDITOUUII
Subject:
Date:
November 14, 1991
SvnoDsis of Previous CnBBission/COUDci1/C~ittee Actionls):
On September 19, 1991 the Redevelopment Committee directed staff to work
with Sturges Foundation representatives to structure an agreement that
would enable the Foundation to eliminate its cost of liability. insurance
payments and continue to assure its prior contractual commitment of use
for the building and loan repayment.
RerftMm~ded IIotionls):
(JIIavor JIft" C Ml r.fttlll,.ll \
lC..-nI'IItty ))eyelo~t C.-i..IOll\
IIO'lIOR: That the Mayor and Co_on Council and the Coumuni ty Development
Co_ission approve the transfer of the title to the Sturges
Auditorium Building to the City of San Bernardino, approve,
assumption by the Development Department of the Sturges Bank of
San Bernardino loan in the amount of $30,526, direct agency
counsel to prepare the appropriate agreements and authorize the
Mayor, City Clerk, Chairman and Co_ission Secretary, as
appropriate, to execute said agreements when complete.
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Administrator
~BRSOR
EXecutive Director
Contact Person(s): Ken R~dersonlStafford Parker Phone:
384-5081
.P.roject AreaCs): Central Citv North lCCN' Ward(s):
One (1)
Supporting Data Attached:
Memorandum from Stur2es Foundation: Staff ReDort
FUNDING REQUIREMENTS:
Amount: 530.526.00
Source:
Budget Authority:
Commission/Council Rates:
KJH:SWP:1ag:2087J
COIIO:SSIOR MEETING AGERDA
Meeting Date: 11/18/1991
Agenda It_lIIo. --i-
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DBVBLOPIIBBr DBPARrllBBr
OF rHI CITY OF !WI BDlWtDIBO
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STAFF REPORT
Sturaes Auditoriua
LollD. ABS1BDtion Reouest
In November 1984, the Development Department, sold the Sturges Auditorium,
located at the southwest corner of "E" lID.d Eight Streets in the City of San
Bernardino, to the Sturges Center for the Arts (a.k.a. Foundation). The
Foundation was a non-profit corporation formed to preserve and restore the
eighty-hundred-fifty (850) seat historical structure. As referenced in the
DispOSition and Development Agreement, the Foundation's purpose, then and
now, was to provide a permanent art activity center for the City, establish a
central location for various art lID.d repertory groups of the City, create
classroom facilities alternating as art galleries (permanent/temporsry) and
house various other art and art oriented specialities.
Subsequent to taking ownership of the structure, the Foundation has honored
its contractual commitment and remains steadfast as an advocate for the
arts. More recently, in carrying out its responsibilities, the Foundation
initiated the following financial transactional
4C:) a) $600,000 Accrued cash donations for restoration.
b) $200,000 Donation of material and labor.
c) $ 80,000 August 1, 1988 Loan from Bank of San Bernardino to Sturges
Foundation for last phase of building restoration.
d) $ 50,000 Partial payment against a 10llD. using seal sales lID.d direct
contributions. The loan balance is $30,525.90 lID.d monthly
principal/intereat payments are $269.95.
The Foundation has experienced difficulties in providing liability insurance
for the structure, a requirement made necessary because they own the
property. Although they have attempted to charge participants $500 to assure
adequate insurllD.ce, there is usually a deficit in the amount the participants
can afford to pay. Historically, the Foundation has assumed financial
responsibility for this shortfall which normally amounts, in the aggregate,
to $3,000 - $4,000 yearly. Simply stated the cost of liability insurance for
the Foundation is prohibitive.
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KJH:SWP:lag:2087J
COJIIISSIOB IlEBrIllG AGDDA
lIeetiDa Date: 11/18/1991
AgeDda It_ Bo.
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DBVELOPMElft' DBPA.....I....IIl: STAFF IIPORT
Sturges Auditoriua Loan Assumption Request
Roveaber 14, 1991
Page ltaIIIber -2-
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The Foundation has proposed its transfer of ownerShip of the Sturges
Auditorium to the City of San Bernardino to facilitate the utilization of the
City's insurance to cover the building. The Foundation would continue to
function in its same capacity as an advocate for the arts and the Development
Department would assume responsibility to repay the outstanding loan with a
current balance of $30,525.90. The Foundation would continue to make loan
payments to the Department. Payments on the loan by the Foundation would be
made to the Department yearly under contract terms and conditions designed to
hold the Department harmless from out-of-pocket expenses. This restructuring
of obligations and legal responsibilities would result in the eliminstion of
Uability insurance cost to the Foundation, thus enabUng it to carry out its
stated goals and objectives in a more efficient and economical manner.
During its September 19, 1991 meeting the Redevelopment Committee recommended
staff report directly to the Community Development Commission and work with
Foundation representatives to craft an agreement that would enable them to
eliminate its cost of liability insurance payments and still fulfill its
prior contractual commitment and loan repayment.
Based upon the foreloing, staff recommends adoption of the form motion.
~BJlSOR' becutive Director
Develo1JllDt Departaent
KJH:SWP:lag:2087J
COMIISSIOR IIBBTIIG AGDDA
Reetina Date: 11/18/1991
Agenda Itea Ro. L