HomeMy WebLinkAboutR14-Redevelopment Agency
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DUILOPBIBT DIPART\0,...4NT
OF TIll CITY OF SO BIIllWWINO
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1lE0UlST FOR COtKISSIOR/COUBCIL ACTION
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From:
KENNETH J. IIBNDERSON
Executive Director
Subject: BAB DIVILOPIIDr SICOlUl
ArlMJJI'IUI TO 0WRIIl
PARTICIPATION AGIlIwuI1fr
Date:
August 12, 1992
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SvnoDsis of Previous Commission/Council/Committee ActionCs):
In September 1990, the Community Development Commission approved an
Owner Participation Agreement with H.A.B. Land Development Company,
providing $2,130,000 in financial assistance.
In July 1991, the Community Development Commission approved the first
amendment to the H.A.B. Owner Participation Agreement.
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Recommended MotionCs):
CCommunitv DevelOPMent Commission)
IIOTIOR
That the Community Development Commission approve a
Second Amendment to the H.A.B. Land Development Company
Owner Participation Agreement which provides an
additional $300,000 in financial assistance, subject to
the deal points set forth in the staff report.
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A~rator
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Executive Director
Contact Person(s): Ken Henderson
Phone:
5081
Project Area(s): Northwest: State ColI eRe
Ward(s) :
Five (5)
Supporting Data Attached:
Staff ReDort: MaD
FUNDING REQUIREMENTS:
Amount: $ 300.000
Source: Tax Increment
Budget Authority:
Reauested
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Commission/Council Rotes:
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K.JlI: lag: 0965E
COMMISSION MEETING AGENDA
Meeting Date: 8/17/1992
Agenda Item lIumber: ~
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D~ILOPRIBT DIPART~IKT
01' TIll CITY 01' SAIl BIJl1URDIKO
SrAI'I' IllPORT
BAB DeveloPMent Second Amendment to Owner particioation ARreement
In August of 1990 the Commission approved an Owner Participation
Agreement with H.A.B. Land Development Company which provided
$2,130,000 for roadway and bridge construction in the Northwest and
State College redevelopment project areas.
H.A.B. owns a forty-four (44) acre site south of Interstate 215 between
the Cable Creek and Devil's Canyon flood control channels (see attached
map). The City and businesses in the local area are expected to
benefit significantly by the construction of a road across the property
connecting Industrial Parkway on the north to Hallmark Parkway on the
south. The adjoining of these two roads will provide better access for
users in the State College and Northwest Industrial Parks, and also
improve emergency services access to the properties on the north.
The specific improvements to be installed are the construction of two
bridges connecting Industrial and Hallmark Parkways, including curbs,
gutters, landscaping and underground utilities to be built to City
specification and on alignment approved by the Director of Public
Works/City Engineer.
At present, the project is eighty-two percent (82%) complete but has
essentially run out of funds to complete the improvement program. The
development team has indicated to staff that the original estimates
underestimated total costs by some $300,000. After meeting with the
Chairman and the Executive Director the following deal points were
agreed to, with such deal points forming the underpinnings of the
proposed second amendment:
H.A.B. to pay back interest totalling $205,763.
The Agency will loan an additional $300,000 to H.A.B.
Agency to charae 1.0% new money origination fee.
Further interest accruals will be paid on a quarterly basis.
The new money will have the same maturity date as the original
loan of $2,130,000.
It should be noted that without the infusion of new capital, the
project cannot be completed. Based upon this fact and related issues
and business terms described above, staff recommends adoption of the
form motion.
~~~RSOK' Executive Director
Development Department
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KJB:lag:0965E
COMIIISSIOK IIBITIlfG AGIlUlA
Meeting Date: 8117119~~
Agenda Itea lIumber: -1l-
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