HomeMy WebLinkAboutR37-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Gary Van Osdel
Executive Director
SUBJECT:
ORfC,',.:AL
AMENDMENT NO.1 TO THE 2001
PROPERTY OWNER
REDEVELOPMENT AGREEMENT
WITH YELLOW FREIGHT SYSTEM,
INC.
DATE:
December 11,2001
Synopsis of Previous Commission/Council/Committee Action(s):
On November 9, 2000, the RDA Committee recommended to the Community Development Commission approval of a
Property Owner Redevelopment Agreement by and between the Agency and Yellow Freight System, Inc.
On December 6, 200 I, the RDA Committee recommended to the Community Development Commission approval of
Amendment No. I to the Property Owner Redevelopment Agreement by and between the Agency and Yellow Freight
System, Inc.
Recommended Motion(s):
(Community Development Commission)
MOTION:
ADOPT THE RESOLUTION APPROVING AMENDMENT NO. I TO THE PROPERTY
OWNER REDEVELOPMENT AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY AND YELLOW FREIGHT SYSTEM, INC., AN INDIANA
CORPORATION ("PROPERTY OWNER") FOR THE CONSTRUCTION OF A FREIGHT
TERMINAL, LOCATED SOUTH OF THE SANTA FE INTERMODAL FACILITY AT
1500 WEST RIAL TO AVENUE. (MT. VERNON CORRIDOR PROJECT AREA)
Contact Person(s); Gary Van Osdel/Margaret Park
Phone;
663-1044
Project Area(s)
Mt. Vemon Corridor
Ward(s):
Supporting Data Attached: Ii! Staff Report Ii! Resolution(s) Ii! Agreement(s)/Contract(s) 0 Map(s) 0 Letter/Memo
FUNDING REQUIREMENTS Amount: $ 811,545
Source:
Tax Increment Revenue
SIGNATURE:
Requested
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GVO;MP:sj:12-17-01 Yellow Freight-Mt. Vernon COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: R37
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Amendment No.1 To The 2001 Prooertv Owner Redevelonment Al!reement With
Yellow Freil!ht System. Inc.
BACKGROUND
On January 25, 2001, the Community Development Commission approved a property owner
redevelopment agreement between the Redevelopment Agency and Yellow Freight Systems, Inc.
The Agreement was executed on January 25, 2001.The original agreement stipulates that the
Agency will refund the cost of off-site improvements and fees via an annual reimbursement of
tax increment that is expected to be generated from improvements to this property.
CURRENT ISSUE
At the time this item was presented to the Community Development Commission, Yellow
Freight anticipated finishing both on-site and off-site improvements by December 31, 2001. To
date, Yellow Freight Systems, Inc. has completed construction of the terminal facility and has
been issued a Temporary Certificate of Occupancy (TCO). Since issuance of the TCO, delays in
completing the project have been caused by:
. Lengthy negotiations with Caltrans regarding improvements to Foothill Blvd.
. A four month delay in delivery of a traffic signal from the manufacturer (recently received)
. Southern California Edison's inability to relocate a utility pole until March 2002
Based on these unforeseen delays, the Developer is requesting a six (6) month extension of the
Agreement to June 30, 2002 so that all improvements can be completed. The proposed
reimbursement is predicated on the Developer completing all off-site improvements to the City's
satisfaction, providing certified payroll records for the off-site construction (as proof of
prevailing wage) and providing copies of all receipts for fees paid to the City.
This development provides off-site street improvements that will be a benefit to this project and
to the continued success of the Santa Fe Intermodal Facility. It also meets the objectives and
goals contained within the Mt. Vernon Corridor Redevelopment Project Area Plan, and reduces
blight in the area through improvements to portions of Rial to Avenue, Rancho Avenue and
Foothill Boulevard. Accordingly, staff recommends approval of the Amendment No. I to the
Agreement with Yellow Freight Systems, Inc.
GVO:MP:sj:12-17-01 Yellow Freight-Mt. Vernon
COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: I? 37
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Economic Development Agency Staff Report
Yellow Freight-Mt. Vernon Corridor
December 11,2001
Page Number -2-
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ENVIRONMENTAL IMP ACT
This amendment is consistent with a previously adopted Mitigated Negative Declaration for the
proj ect.
FISCAL IMPACT
Based on Agency staffs estimates, the Project will yield an estimated gross tax increment to the
Agency of approximately $90,000 per year through the life of the Mt. Vernon Corridor
Redevelopment Project Area (23 years). After deduction of the mandated pass-throughs and
twenty percent set-aside amounts and an Agency set-aside of $15,000, approximately $50,000
will be available to the Agency annually for offsetting the cost of the proposed Project.
However, this proposed amendment will not result in any additional fiscal impact.
RECOMMENDATION
That the Community Development Commission approve Amendment No. I to the Property
Owner Re velopment Agreement by and between the Agency and Yellow Freight System, Inc.,
~pro,. rod. ZR'Port.
Gary an Osdel
Exe utive Director
GVO:MP:sj:12-17-01 Yellow Freight-Mt. Vernon
COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: ~7
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
AN AMENDMENT NO. 1 TO A PROPERTY OWNER
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND YELLOW FREIGHT SYSTEM, INC., AN
INDIANA CORPORATION AND AUTHORIZING THE EXECUTION
OF SAID AMENDMENT ON BEHALF OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
WHEREAS, Yellow Freight System, Inc. (collectively, with any related entity, the
"Property Owner") has requested that the Redevelopment Agency of the City of San
Bernardino (the "Agency") approve the terms of an Amendment No. 1 to the Property Owner
Redevelopment Agreement (the "Agreement") for the purpose of supporting the redevelopment
and reuse of certain lands and providing reimbursement financing for the construction of off-
site street improvements adjacent to a new freight terminal development project at 1500 West
Rialto Avenue, San Bernardino, California (the "Project"); and
WHEREAS, the Project is consistent with the goals of the Mt. Vernon Corridor
Redevelopment Project Area, the General Plan; and
WHEREAS, the Project has resulted in the construction of an 115,178 square foot
interior area freight transfer and truck terminal facility by the Property Owner, and the
completion of the Project shall assist the Agency in accomplishment of its goal to reduce blight
in the project area, pursuant to Redevelopment Law.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
Section 1.
The above recitals are true and correct.
Section 2. Pursuant to CEQA Regulations Section 15096, the Community
Development Commission, as the governing board of the Agency, finds that as a responsible
agency under CEQA for the purpose of the redevelopment assistance provided to the Property
Owner under the terms of the Agreement and Amendment No. I, no further environmental
review of the Project or the Agreement by the Commission is necessary at this time in
connection with its consideration of the approval of the Agreement. The City of San
Bernardino has, by separate action, previously approved the Project, subject to a number of
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Yellow Freight System. Inc.
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conditions and development impact mitigation measures, and the Property Owner shall be
responsible for complying with those conditions and measures. A copy of the July 13, 2000
CEQA determination of the DRC of the City of San Bernardino is on file with the Agency
Secretary.
Section 3. The Community Development Commission hereby approves the
Amendment No. I to the Agreement with the Property Owner. The Community Development
Commission hereby authorizes and directs the Chairperson or her designee to execute
Amendment No. 1 to the Agreement on behalf of the Agency. The Executive Director of the
Agency is hereby authorized to make minor corrections, additions, and clarifications to the
Amendment prior to its execution by the Chairperson, provided said changes are approved by
Agency Counsel, are not substantive in nature, and do not increase the monetary impact to the
Agency under the terms ofthe Agreement as previously approved.
Section 4. Subject to the satisfaction by the Property Owner of the conditions set
forth in the Agreement, the obligation of the Agency to make the reimbursements to the
Property Owner under the terms of the Agency Promissory Note from the special source of
funds described in the Agreement, shall be an "indebtedness of the Agency", as this term is
defined in Health and Safety Code Section 33675. The Executive Director is hereby directed to
cause the Statement of Indebtedness for the Mount Vernon Corridor Redevelopment Project to
include the indebtedness of the Agency to the Property Owner, as evidenced by the Agreement
and the Agency Promissory Note, to be filed with the Auditor-Controller of San Bemardino
County in the manner authorized by law.
Section 5. The authorization to execute the Amendment No. I is rescinded if the
Agreement is not fully executed by both parties within sixty (60) days of the passage of this
Resolution.
Section 6.
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This resolution shall take effect immediately upon its passage.
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12117/01
Yellow Freight System. Inc.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
AN AMENDMENT NO. I TO A PROPERTY OWNER
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND YELLOW FREIGHT SYSTEM, INC., AN
INDIANA CORPORATION AND AUTHORIZING THE EXECUTION
OF SAID AMENDMENT ON BEHALF OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
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7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
8 Community Development Commission of the City of San Bernardino at a
meeting
9 thereof, held on the
day of
,2001, by the following vote to wit:
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COMMISSION MEMBERS:
ESTRADA
LIEN
MCGINNIS
SCHNETZ
SUAREZ
ANDERSON
AYES
NAYS
ABSTAIN
ABSENT
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16 MC CAMMACK
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Secretary
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The foregoing resolution is hereby approved this _day of
,2001.
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Judith Valles, Chairperson
Community Development Commission
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Approved a to form and Legal Content:
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25 By:.
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12/17/01
Yellow Freight System, Inc.
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AMENDMENT NO.1
2001 PROPERTY OWNER REDEVELOPMENT AGREEMENT
(YELLOW FREIGHT SYSTEM, INC.)
THIS AMENDMENT NO. I (the "Amendment No. I") to that certain 2001 Property
Owner Redevelopment Agreement ("Yellow Freight System, Inc.") by and between the
Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the
"Agency"), and Yellow Freight System, Inc., an Indiana corporation ("Property Owner"), dated
as of January 8, 2001 (the "Agreement"), is entered into within reference to the following facts:
RECITALS
WHEREAS, the Agency and the Property Owner established a date for
completion of the proposed development of the Property Owner contemplated in the Agreement
12 by December 31,2001; and
WHEREAS, the Property Owner encountered unanticipated delays in completing off-
site improvements required under the Agreement due to lead times and other delays
encountered with public utility companies and State agencies necessary to complete such off-
site improvements; and
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WHEREAS, the Agency and the Property Owner desire to extend the time for the
Property Owner to complete the required off-site improvements under the Agreement;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AS FOLLOWS:
Section 1. The Recitals set forth above are hereby incorporated into this
Amendment No. I by this reference, as though fully set forth herein.
Section 2. Except as hereby amended, the Agreement is in all respects ratified and
confirmed and all the terms and provisions and conditions thereof shall be and remain in full
force and effect.
Section 3. Section l.(ii) of the Agreement is hereby amended to read in its entirety,
as follows:
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"(ii) the Property Owner has completed the work of improvement of the
Development Project on the Property, including the installation of the off-site
work to be conducted by the Property Owner in various public street rights-of-
way, as described in Exhibit "D" as the "Public Improvement Items," by a date
not later than June 31, 2002. For the purposes of this Agreement, the words
"work of improvement of the Development Project" shall be deemed "completed"
on the date when the Property Owner files its notice of completion as defined in
Civil Code Section 3093 for the Development Project;"
Section 4. This Amendment No. 1 shall take effect from and after the date of
adoption and approval by the Agency and both of the parties, pursuant to due authorization,
have executed this Amendment No. 1.
Section 5. This Amendment No.1 may be executed by the parties hereto in
duplicate originals, each of which shall be considered an original, but all of which
together shall constitute one and the same instrument.
Section 6. The agreements contained herein shall not be construed in favor of
or against any party, but shall be construed as if all parties prepared this Amendment No.
Section 7. The Agreement, as amended by this Amendment No.1 constitutes
the entire agreement between the parties hereto. The Agreement, as amended by this
Amendment No. I, supersedes all prior negotiations, discussions and previous agreements
between the parties concerning the subject matters covered therein. The parties intend the
Agreement, as amended by this Amendment No. I, to be the final expression of their
agreement with respect to the subjects covered therein and herein and a complete and exclusive
statement of such terms.
Section 8. No modification, waiver, amendment, discharge, change or alteration of the
Agreement, as amended by this Amendment No.1, is valid, unless in writing and signed by
both of the parties hereto.
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IN WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino
and Yellow Freight System, Inc., by and through the signatures of their duly authorized
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3 representatives below, hereby execute this Amendment No. I, as follows:
PROPERTY OWNER
Yellow Freight System, Inc.,
An Indiana corporation
By:
President
By:
AGENCY
Redevelopment Agency of the
City of San Bernardino
By:
Judith Valles
Chairperson
ATTEST:
By:
Gary Van Osdel
Secretary
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** FOR OFFICE USE ONL Y - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 12-n-01 Item #
Vote: Ayes 1-1.0 Nays --e-
Change to motion to amend original documents:
12... 3'1 Resolution # _.cJ:~~i~cOI ~~5L___
Abstain 0 Absent ._-'1___.___.__
Reso. # On Attachments: ~ Contract term:
Note on Resolution of Attachment stored separately: =___
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
NullNoid After'_~mf2A:t-f,i!:.-(5~a2. _
By: ____________
Date Senllo Mayor: \'2 -\ ~--O\ Reso. Log Updated /
Date of Mayor's Signature: \2- \,,\-C , Seal Impressed: _.__~_._________________
Date of Clerk/CDC Signature: I if?D --() \
Date Memo/Letter Sent for Signature: e()A ()&-J:\,(1IM" ')(0" See Attached: ~ Date Retumed: I d- J I ') /0 r
60 Day Reminder Letter Sent on 30th day: See Attached:
90 Day Reminder Letter Sent on 45th day: See Attached:
Request for Council Action & Staff Report Attached: Yes /'
Updated Prior Resolutions (Other Than Below): Yes
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes
Updated CDC Personnel Folders (5557): Yes
Updated Traffic Folders (3985, 8234, 655, 92-389): Yes
No By
No / By
No 7 By
No ~/ By
No By
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
EDA
./
Finance
MIS
Police Public Services
Water
Others:
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: --D.:l.:L.
Date: l'(~HI(J:r
,
Revised 01112/01