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HomeMy WebLinkAboutS16-Community Development - : REQ'OST FOR codCJt A5"ION ct::y OF SAN BERNAR'e"O From: Kenneth J. Henderson, Director Subject: Distribution of Industrial Revenue Reserve and Development Funde Dept: Couununity Development Date: February 12, 1987 Synopsis of Previous Council action: The Mayor and Couunon Council previously considered this matter on December 22, 1986, January 5, 1987, January 12, 1987 and January 18, 1987. The matter was continued on each occasion. On February 2, 1987, the Mayor and Couunon Council approved a fifty-fifty (50-50) allocation of one percent (l~) Industrial Development Bond fee proceeds to the City Community Development Department and San Bernardino Economic Development Council. The City Attorney wae directed to prepare a resolution for the February 16, 1987 Council meeting. Recommended motion: ADOPT RESOLUTION. Contact panon: Supporting data attached: Kenneth J. Henderson Phone: 5065 Staff Report Ward: 1-7 FUNDING REQUIREMENTS: Amount: Source: (ACCT. NO.) (ACCT. DESCRIPTION) Finance: Council Not..: 75.0111 Agenda Item No. S.-I(, A.. - - Coy OF SAN BERNAR~O - REQl.OST FOR COUNCIL A~ION STAFF REPORT On February 2, 1987, the Mayor and Common Council considered the distribution of industrial revenue reserve and develop- ment funds between the City Community Development Department and the San Bernardino Economic Development Council (SBEDC). After discussion, the Mayor and Common Council adopted a form motion authorizing and directing the following: 1. That the balance of the rDB funds be allocated on a fifty-fifty (50-50) basis to City and SBEDC. 2. That neither the small business loan program or the SBEDC marketing program receive any money until funds become available. 3. That no money shall be committed until funding is received. 4. That accrued interest shall flow equally to both sides. 5. That a timeframe be developed as to how the allocation will work. Additionally, the Director of Community Development was directed to amend the Economic Development Program (EDP) guidelines establishing the Mayor and Common Council of the City of San Bernardino as the approving authority (see agenda item 13), and the City Attorney was directed to prepare a resolution incorporating the above provisions for the February 16, 1987 meeting of the Mayor and Common Council. The attached resolution has been prepared pursuant to the above action taken by the Mayor and Common Council. Staff recommends adoption of the resolution. .~:fJ~~~ Director of Community Development KJH/lab/0072 5/12187 7S.0264 0 1 2 3 4 5 6 7 8 9 10 11 12 13 o o o RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO DIRECTING THE DISTRIBUTION OF INDUSTRIAL REVENUE RESERVE AND DEVELOPMENT FUNDS BETWEEN THE SMALL BUSINESS REVOLVING LOAN PROGRAM OF THE CITY'S COMMUNITY DEVELOPMENT DEPARTMENT AND INITIAL FUNDING FOR SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL'S MARKETING PROGRAM. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. A. City has in the past used its Industrial Revenue Reserve and Development Fund for providing financing for various activities of the San Bernardino Economic Development Council. B. City and San Bernardino Economic Development Council, hereinafter .EDC,. have determined that portions of EDC's former activities should be assumed by City, and delegated to its 14 community Development Department, and that EDC should engage 15 primarily in marketing efforts in the future. 16 C. City has already sold, or enabled another public entity 17 to sell in cooperation with City, certain revenue bonds for which 18 fees will be payable into City's Industrial Revenue Reserve and 19 Development Fund, hereinafter referred to as .Fund,. as follows: 20 1. Highland Hills, $245,000 due to Fund upon break of 21 escrow, 22 2. 23 escrow, 24 3. 25 escrow, and 26 4. perris Hills, $73,063 due to Fund upon break of Shadow Hills, $108,500 due to Fund upon break of Sisters of Charity of the Incarnate Word, $311,050 27 due upon Closing of bond sale, expected before the end of 28 February, 1987. 2/12/87 o o o o 1 D. Of these funds, only $311,050 is expected to be available 2 in the immediately foreseeable future, with the remaining $426,563 3 expected to be available within the next twenty-four months, in 4 all likelihood. 5 E. City desires to commit one-half of the available funds 6 and the other anticipated funds which may become available in the 7 Fund, when and as they become available, to provide funding for 8 the EDC's marketing program, and to commit the remaining one-half 9 of such funds to City's Community Development Department for its 10 small Business Revolving Loan Program, heretofore adopted and 11 approved by the Mayor. 12 SECTION 2. Implementation. 13 A. City's Director of Finance is hereby authorized and 14 directed to set aside one-half of the available money in the Fund, 15 when and as such monies are available, for EDC, and one half of 16 such available monies for City's small Business Revolving Loan 17 Program, to be disbursed from time to time in accordance with 18 authorizations from the Mayor and Common Councilor in accordance 19 with a budget approved therefor by the Mayor and Common Council. 20 All those monies described in Section 1 above shall be included 21 within this distribution, including monies from future bond 22 sales, when and as such funds are available, subject to the 23 following limitations: 24 1. No funds shall be committed or obligated by either 25 city's Community Development Department or EDC until such funds 26 are actually available. 27 2. All interest which is earned upon such funds shall 28 be divided equally between EDC and City's Small Business Revolving 2/12/87 -2- o o o o 1 Loan Programl once funds have actually been allocated to either 2 such account, interest earnings from monies in EDC's account will 3 be credited to EDC, and interest earnings from monies in the Small 4 Business Revolving Loan Program shall be credited to that program. 5 C. Any monies received by the Fund from sources other than 6 those specifically identified in Section 1 hereof shall be subject 7 to this distribution unless otherwise directed by specific action 8 of the Mayor and Common council. 9 D. Monies paid or payable to EDC under these provisions 10 shall be the sole monies payable to EDC from the City, unless 11 otherwise directed by the Mayor and Common Council. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San 14 Bernardino at a meeting thereof, held on 15 the day of , 1987, by the following vote, 16 to wit: 17 AYES: Counc i 1 Members 18 19 NAYS: 20 ABSENT: 21 22 23 24 of City Clerk The foregoing resolution is hereby approved this day , 1987. 25 Mayor of the City of San Bernardino 26 Approved as to form: 27 ~....~__ ),.47I,s ~-;t!::y--~ 2/12/87 -3-