HomeMy WebLinkAboutR17-Economic Development Agency
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DEVELOPMEBT DEPARTMEBT
OF TIlE CIn OF SAlt BEUARDIRO
REODEST FOR CIMnSSION/COUllCIL ACTION
From:
KENl'lETH J. HENDERSON
Executive Director
Subject: BOSPIrALIn LABE
SECORIn DISTRICT
Date:
December 12, 1991
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SYnopsis of Previous CnMmfssionlCounci1/CnnBfttee Action(s):
None
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Recommended Motion(s):
(eo..unitv DevelolBent CO""'Ifssion)
MOTION
That the Community Development Commission consider
providing financial assistance in the amount of $41,933
to assist in the establishment of the Hospitality Lane
Security District.
A~or
~OB
EXecutive Director
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Contact Person(s): Ken Henderson
Phone:
5081
Project Area(s): SEIP
Ward(s):
Three (3)
Supporting Data Attached:
Staff Report: Memo
FUNDING REQUIREMENTS:
Amount: $ 41.933
Source:
Tax Increment
Budget Authority:
Beill2 SouRht
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Commission/Council Botes:
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KJH:lag:0324E
COIMISSIOB IlEETIIIG AGDDA
Meeting Date: 12/16/1991
AgeDda I tela lfullber:
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DEVELOPMEBT DEPARTMEBT
OF TIlE CIn OF SAW BERlWlDIBO
STAFF IlEPOIll'
BosDita1itv Lanp Securitv District
A proposal to establish a security district for certain Hospitality
Lane Business District businesses has been received by the City.
Essentially, because of the time and expense associated with the
establishment of a formal assessment district, the property and
business owners have elected to establish a private security district.
Hospitality Lane Business District has received a proposal from
Qualified Security totaling $83,865.60 annually, and proposes that this
cost be split equally between the district and the City. Set forth
below are the businesses willing to participate in the formation of a
private security district:
Black Angus Restaurant
Coco's Restaurant
Red Lobster Restaurant
Tony Roma's Restaurant
Comfort Inn
Travelodge
Spoons Restaurant
EI Torito Restaurant
Tri-Cities Investment Corporation
AMC Commercenter Six Theatres
Because of certain questions regarding the use of redevelopment funds
for this purpose, legal counsel will provide to the Commission an
opinion relative to the use of redevelopment funds for this purpose.
Staff recommends adoption of the form motion.
~~~OB' Executive Director
Development Departaent
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1CJB:lag:0324E
COMISSIOB IIDTIlIG AGDDA
Meeting Date: 12/16/1991
Agenda Itea lIumber: ~
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C I T Y
o F
SAN
BERNARDINO
INTEROFFICE MEMORANDUM
/D)m&mowmfii)
UIJ IE' 11991 l!lj
TO:
Timothy C. steinhaus, Administrator
Economic Development Agency
Council Office
ECONOMIC DEVELOPMENT
AGENCY
FROM:
SUBJECT: EDA Agenda
DATE: December 11, 1991
COPIES:
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Pursuant to discussion with Ken Henderson, this date, request
the following item be placed on the EDA Supplemental Agenda for
December 16:
SUbject - Matching Funds for Security District - Hospitality
Lane area.
Motion - To discuss and take possible action regarding
allocation of watching funds of $41,928 to assist businesses in the
Hospitality Lane area with private security service.
166l
RALPH HERNANDEZ
Councilman, Thi
ard
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"Because you deserve the best"
December 11, 1991
councilman Ralph Hernandez
City Hall
300 North D street
San Bernardino, CA 92418
Dear Mr. Hernandez:
The business owners/managers in the Hospitality Business
District are serious about expanding our ongoing crime prevention
efforts in our area.
Although we support the city in its plan to increase the
police force's protection on Hospitality Lane, we realize that this
will take time and we feel that we need an iDlllediate solution,
temporary or otherwise, in anticipation of the traditional increase
in crime. during the holiday season.
The proposed solutions as outlined in the attached letter have
been discussed by the restaurant and the hotel/motel businesses on
Hospitality Lane.
The agreed upon course of action is as follows: those
businesses listed in this letter are willing to share the cost of
an independent security service. This service would provide two
(2) armed vehicles to patrol those participants' parking lots seven
(7) nights a week for eight (8) hour shifts provided their
individual cost does not exceed $10.00 per day.
The security company whose bid we are considering is offering
a thirty pOl-day contract which we have the option of renewing or
cancelling at the end of each month. Tri-Lakes Security and
Pinkerton Security have also shown an interest in providing
security for the Hospitality Business District once the
"partnership" with the city is established and a budget is
approved.
Although we are proposing that a private service provide
security, we are prepared to accept the recommendations of the
Police Department.
1991 Diners Ct. . Hospitality Centre . (714) 884-7177
San Bernardino, CA 92408
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"Because you deserve the best"
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Qualified Security has given us quotes and cost
projections that are affordable provided that the city will
match our investment 50/50. The total cost of hiring this
security service with a minimum of twelve (12) businesses
participating, is $6,988.80 per month. This projects to an
annual cost of $83,865.60; $41,933 to be divided among the
businesses in the district, and $41,933 to be paid by the
city. There are several businesses that have expressed an
interest in participating to make up twelve or more
businesses, but they require a written confirmation from the
city before making the commitment.
Our selection of the security service was based on what we as
a group felt would be the most effective deterrent of crime during
the nighttime hours. We are supportive of the San Bernardino city
Police, and we feel confident that the city is doing its best to
provide police service in our area. However, we feel an immediate
need to assume some of the responsibility for taking action on the
crime issue which is negatively affecting our businesses.
The businesses that wish to participate are:
Black Angus Restaurant
Coco's Restaurant
Red Lobster Restaurant
Tony Roma's Restaurant
Comfort Inn
Travelodge
Spoons Restaurant
EI Torito Restaurant
Tri-Cities Investment Corporation
AMC Commercenter Six Theatres
We look forward to your response with regard to the city's
proposal to provide fifty percent of the fees needed for this
security service.
Sincerely,
1iNc!~
Debbie Cochran
OWner, Inland Flowers
cc: Mayor W.R. Holcomb
Shauna Clark, City Administrator
Roger Hardgrave, City Engineer
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1991 Diners Ct. . Hospitality Centre. (714) 884-7177
San Bernardino, CA 92408 /7
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SAri BERrlARDlrlO AREA CUAMBER OF COMMERCE
546 W. 6TH ST. . P.O. BOX 658. SAN BERNARDINO. CA 92402. (714) 885.7515
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November 5, 1991
Dear Business Person:
The growth of businesses in the southeastern section of the
city of San Bernardino, generally described as Hospitality Lane,
Tri-City Corporate Centre, and The Club area, has been very
encouraging. But, along with this rapid growth, we have seen
increased traffic congestion and a rise in criminal activity.
The problem of traffic congestion will be reduced by the
addition of a traffic signal at the intersection of Hospitality
Lane and Commercenter East. And, the new west-bound offramp for
Interstate 10, which will exit onto Hospitality Lane near Chili's
Restaurant, will relieve traffic problems in the Waterman Avenue
area.
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However, the problems of auto theft, panhandling, robbery,
battery etc., will not soon go away. They are societal problems
and, although the police department is doing its best to meet the
challenge, they cannot provide the security necessary to stop crime
in and around businesses in that area.
The San Bernardino Chamber of Commerce has held several
meetings of business owners and managers of businesses in the area
to see what can be done to reduce the criminal activity.
The Chief of Police, Dan Robbins, Councilman Ralph Hernandez,
and other city representatives have attended these meetings.
The cost to put additional city pOlice personnel into the area
is very high. But, the cost to hire civilian security guards can
be more reasonable. In addition, the security guards can be hired
very quiCkly, whereas, adding additional city law enforcement
officers may take considerable time due to training requirements.
In summary, the problem is the lack of adequate to meet the
rising crime rate in the southeast section of the city.
A possible solution would be to create a Security Assessment
District in order to generate sufficient revenue to hire private
security guards to provide additional protection for the businesses
in the area.
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An alternate plan calls for the Restaurant, Hotel, and Motel
owners or managers to assess their individual needs and budgets and
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Security';'" 'ur:ity K-9
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November 12, 1991
Hospitality Business Association
San Bernardino, CA.
Attention Owners and Managers
SUBJECT: PROPOSAL FOR SECURITY SERVICES FOR HOSPITALITY LANE
After researching the statistics on the crimes at Hospitality
Lane.we noticed a high number of vehicle thefts and property
loss and of a more serious nature a number of armed robberies.
We see the need for some type of security program. The police
are doing all they can to stop or slow your currant problems
but the increase in crimes in other areas put a limit on the
amount of time they may spend in anyone area.
Although you may feel the vehicle thefts and related problems
are not directly your problem the loss in revenue due to the
negative publicity and the reluctance of repeat business may be
more costly in the future than a security program in the present.
Therefore we are offering the following proposal:
We propose a security team of two radio equipped patrol vehicles
and two armed officers to remain in the area known as Hospitality
Lane for the purpose of deterring potential property loss and to
respond to any security needs that may arise. We will also "at
no charge to you"" have other nightly patrol vehicles come through
your area to add additional deterrent.
The cost for the above service will be (per hour-per business)
based on 16 man hours per evening. The following quote is at the
request of the business owners at the meeting on 11-12-91.
18 business, 7 days a week, cost of $413.00 per month
18 business, 5 days a week, cost of $296.00 per month
The monthly amounts are based on a cost of only $13.60 per day
an hourly cost of only $.85. per hour.
As we feel these rates are very competitive our profit from this
venture will be your referrals to others on our doing a good job.
Sincerely yours,
..~, A /
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Charla R. Warner
Director of Operations
P.O. Box 7118 . Redlands, California 92375 . 714-793-9771
CA License No. PPO-I0386, PDD-l70
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SABO & GREEN
A PROJl'll'BSJONAL CORPORATION
ATTORNEYS AT LAW
BUlTE 400
8311O CANOGA A VENUE
WOODLAND HILLS. CALIFORNIA 91387
(818) 70400195
TELECOPIER UlUP 70404'71:9
December 13, 1991
Mr. Timothy C. Steinhaus
Aqency Administrator
Redevelopment Aqency of the
city of San Bernardino
201 North "E" Street
Third Floor
San Bernardino, California 92401
Re: Fundinq of Security Costs - Hospitality Lane Security
District; Our File SBEO0001
Dear Tim:
You have inquired as to the feasibility of the
Redevelopment Aqency of the city of San Bernardino (the "Aqency")
fundinq a portion of the costs of establishinq a private security
district in the Hospitality Lane Business District. The
Hospitality Lane area is located in the Southeast Industrial Park
Redevelopment Project Area of the Aqency.
You have indicated that because of increasinq levels of
crime, primarily related to auto theft and vandalism in privately
owned parkinq facilities in the area, many of the businesses in the
Hospitality Lane Business District have requested the assistance of
the Aqency in connection with forminq a private security district
to provide twenty-four hour surveillance of" such parkinq
facilities. The request proposes that a private security district
would be able to provide a level of service which the city of San
Bernardino Police Department cannot presently provide due to a lack
of personnel and equipment. A full-time surveillance would be
required in order to be effective and such level of service under
these circumstances would not be expected to be provided by the
city of San Bernardino Police Department or, if a similar problem
were located within another municipality, by any other police
department or law enforcement aqency within their normal duties and
levels of protection services.
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December 13, 1991
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You have further indicated that the increasinq crime rate
in the area is detractinq from the economic welfare of the local
business concerns, many of which are restaurants which rely on
vehicle traffic, and such crime incidents are therefore threateninq
the economic viability of the area. The Hospitality Lane area has
been part of a redevelopment project area that was successfully
redeveloped by the Aqency and which now is threatened to
deteriorate by a possible reoccurrence of bliqht if the increasinq
crime levels remain unchecked. Apparently, several of the
businesses have already suffered adverse economic consequences as
a result of reduced patronaqe from this crime dil.....
From a review of 'the California Community Redevelopment
Law there is no specific authority which indicates that the Aqency
has the ability to provide fundinq for a private security district
of the nature requested by the businesses in the Hospitality Lane
Business District. However, there is also nothinq in the .
California co_unity Redevelopment Law which specifically indicates
that such activity would be prohibited. As you Jll8.y be aware, there
exist certain restrictions on the ability of a redevelopment aqency
to fund ..intenance and operation costs. However, such a
restriction applies only to the operation and maintenance of
publicly owned buildinqs, facilities, structures or other
improvements. (Health and Safety Code Section 33445). The
restriction does not apply to Aqency-owned facilities. Under
Health and Safety Code Section 33400, a redevelopment aqency has
the ability to fund the operation and maintenance costs associated
with any real or personal property of the redevelopment aqency. It
is in reliance upon such provisions that the Aqency is presently
able to fund the security costs associated with the Aqency's
interests in the Carousel Mall.
Since the California Community Redevelopment Law
specifically addresses operations and ..intenance activities and
only prOhibits such activities with respect to publicly owned
facilities, other than Aqency-owned facilities, arquments could be
formulated which would state that if the Leqislature had intended
to restrict a redevelopment aqency's ability to fund operation and
maintenance costs of non-publiCly owned property it would have
specifically so provided. Under such an analysis one miqht arque
that the Leqislature only intended its prohibition on operations
and maintenance activities to be applicable to publicly owned
facilities and that it would not extend to private activities.
If the Aqency were able to make certain findinqs and
determinations that the provision of such services would be of
direct benefit to the redevelopment project area and in the
furtherance of the redevelopment purposes of the Aqency, then
arquments could be established in favor of supportinq such a
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December 13, 1991
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proqrUl. The Aqency would be required to establish that the
provision of security services, which could not otherwise be
provided by the city of San Bernardino Police Department, would
assist in the elimination of bliqhtinq effects and the prevention
of the likely reoccurrence of bliqht. The Aqency could also draw
an analoqy to the Aqency's fundinq of security activities at the
Carousel Mall. Under such cirCUDl8tances, the Aqency in effect
would be protectinq its interests in the continued receipt of tax
increment revenues and furtherinq its redevelopment purposes by
ensurinq the continued economic viability of the Hospitality Lane
area. Since the Aqency has previously caused the redevelopment of
the Hospitality Lane portion of the Southeast Industrial Park
Project Area and since an unchecked increase in the crime rate has
the potential to neqate established redevelopment benefits throuqh
a depreciation of land values and a reduction of economic
activities, it follows that the Aqency should be able to assist in
protectinq its interests and preservinq its past achievements.
It is our recommendation primarily based upon the short
period of time which we have had to review this matter, that
toqether with Aqency Staff and the City Attorney's office, we
attempt to 'structure an aqreement either with the affected business
owners or some other association and determine whether a suitable
aqreement can be drafted that recoqnizes the riqhts of existinq
owners and business tenants within a redevelopment project area.
We must be mindful of avoidinq a "qift of public funds" concern in
achievinq a redevelopment purpose under the California Community
Redevelopment Law. If you have any additional questions reqardinq
this matter, please contact me at your earliest convenience.
Very truly yours,
SABO Ii GREEN,
A Professional COrPOration
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Timothy J. Sabe
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